In February 2023, KSA rejected an application from the provider for a licence to access the Dutch regulated market. The identity of the gambling provider in question has not been revealed.
KSA said it turned down the licence application due to concerns over a former shareholder in the provider. The regulator uncovered the issue while conducting standard integrity tests it carries out on all applicants.
The shareholder in question was suspected of involvement in the murder of an investigative journalist who was investigating a major corruption scandal in Malta.
While the shareholder was no longer linked with the provider, KSA requested more information as part of its approval process. However, the regulator said information supplied was “incorrect and evasive or incomplete,” leading it to refuse the application.
Appeal filed over gambling licence rejection
The provider disagreed with this reasoning and raised a case with the court of appeal in the Netherlands. In its response, it confirmed the shareholder severed all ties with the provider in November 2021 after offloading their shares.
The unnamed provider also set out how as soon as it became aware of the allegations facing the shareholder, it made efforts to buy them out of their shares. It also noted clearance from the National Bibob Agency, a Dutch agency that investigates the integrity of potential business partners.
In addition, the provider noted how it supported the formation of new online gambling laws in the Netherlands. This included helping to introduce the Cruks self-exclusion scheme and sponsoring the Betblocker online gambling blocking tool.
Court sides with KSA
The case was heard last week in the Hague District Court. The decision to side with KSA was reached on 20 February but only made public yesterday (26 February).
Setting out its reasoning, the court said that as the provider supplied incorrect or incomplete information, this is sufficient to conclude that the reliability of the company is not beyond doubt. As such, KSA was within its own right to refuse the licence application.
KSA welcomed the ruling, saying if there is any doubt over an applicant, it is its responsibility to reject the application.
“Carrying out integrity tests is an important part of the supervision by the KSA,” the regulator said. “Ensuring the integrity of providers has a high priority and it is the responsibility of the provider to demonstrate this reliability with the correct information.
“If an investigation by KSA shows that the reliability of a director is not beyond doubt, or if providers do not provide the correct information, KSA can take enforcement action or refuse a requested permit.”
Despite the Hague District Court ruling, the provider may still lodge another appeal.
Original article: https://igamingbusiness.com/legal-compliance/dutch-regulator-legal-victory-murder-licence-refusal/
