The KSA investigated both operators, neither of which have been identified, and found that players, including young adults, had been allowed to deposit and lose thousands of euros over a short period of time without either operator taking action.
This, the KSA said, was in breach of the country’s Money Laundering and Terrorist Financing (Prevention) Act (WWFT).
Specific cases included how a 21-year-old lost €17,000 (£14,839/$17,378) between October and December 2021, while a 26-year-old lost almost €114,000 in November 2021 alone.
Meanwhile, a 23-year-old lost a total of €87,000 between October 2021 and March 2022, and a 29-year-old lost €27,000 in the space of just two weeks.
The KSA said licensed operators are required to monitor the behaviour of their customers and take action if any unusual activity is identified. This, the KSA said, could include when a player suddenly deposits high amounts or when there is a suspicion of match-fixing, with the operator required to report incidents to the Financial Intelligence Unit Netherlands.
In its WWFT guideance, the KSA also previously pointed out the risk of high deposits, even when they come from the player’s bank account, and that source of funds checks should be carried out by the licensed operator.
“The KSA is very concerned that gambling addicts commit criminal activities in order to continue gambling,” the KSA said.
The regulator will monitor the two operators over a three-month period to ensure relevant changes are made to their processes. A further check will take place at the start of next year.
Original article: https://igamingbusiness.com/legal-compliance/kansspelautoriteit-warns-operators-over-player-protection-failures/
