Cloudflare, the globally recognized company specializing in internet services, has now entered into an agreement with the Netherlands Kansspelautoriteit Gaming Authority (KSA) in a concerted effort to identify and clamp down on unlicensed online gambling activities. This new development empowers the KSA with the pertinent right to request information from Cloudflare, which will prove instrumental in pinpointing the hosting entities responsible for illicit gambling operations.
The statement issued by the KSA expounds on the significance of Cloudflare’s involvement, emphasizing the essential role that the information provided by Cloudflare will play in the quest to eradicate illegal gambling supply. This collaboration arose in the aftermath of a dilemma where the KSA had mandated Cloudflare to discontinue its services to two unauthorized gambling service providers, only to revoke this order later.
Cloudflare initially found itself under pressure to stop servicing the illegal affiliate websites NederlandsCasinos.net and OnlineCasinosSpelen.com after their operations were uncovered by a KSA investigation. Subsequent dialogues between Cloudflare and the KSA brought to light the fact that Cloudflare lacked the unilateral capability to block these operators.
Consequently, the mandate for Cloudflare to halt services was retracted, and instead, a pact was forged to stifle the illegal supply. This shift in strategy underscores the intricate nature of online regulation and the need for coordination between internet services providers and regulatory bodies.
In the Netherlands, offering gambling services without a license is strictly prohibited, as is the promotion of such illegal activities. Under the Dutch Gambling Act, there exists a set of stringent rules to govern these matters. The KSA, for its part, utilizes a range of interventions to combat unauthorized offers, including the establishment of roadblocks at payment and internet service provider levels. By severing the assistance rendered to illegitimate providers by these intermediaries, the KSA hopes to significantly disrupt, if not entirely halt, illegal gambling offerings.
Interestingly, the KSA’s recent sixth monitoring report on Dutch online gambling illustrated that about 90% of players restrict their activities to legally sanctioned websites. This figure vastly exceeds the initial channelization goal of 80%, showcasing the effectiveness of the regulatory measures in place.
The reports also revealed that gross gaming revenue (GGR) had reached a high of €1.39 billion for the year as of December 31, 2023, marking a substantial 28% increase from the previous year. However, in the latter half of the same year, the GGR saw only a marginal increase of 1% when juxtaposed against the first six months.
March 2024 became a landmark period as the KSA issued its heftiest fine to date, penalizing Gammix Limited a staggering sum of €19.6 million for providing gambling services in the absence of a license. This decision followed a previous warning in June 2022, in which Gammix was explicitly ordered to exit the Dutch market or face a weekly fine of €1.4 million. By March of the following year, Gammix faced additional fines totaling €4.4 million for failing to comply with the KSA order to cease operations in the Netherlands.
The latest fine levied against Gammix is a culmination of these prior infractions. The KSA made it clear that Gammix had not taken any decisive steps to prevent Dutch players from accessing its services. This ongoing saga underscores the KSA’s unwavering commitment to uphold the integrity of Dutch gambling laws and ensure that only licensed providers operate within the nation’s borders.
