The Dutch gambling authority, Kansspelautoriteit (KSA), has taken action against the National Postcode Lottery and Friends Lottery for offering online games that are not permitted under their respective lottery licenses. As a result, the KSA has imposed an order subject to periodic penalty payments on both entities.
The action is due to each entity offering online games that are not permitted according to the lottery permits held. If this is not ceased immediately, both parties will pay a penalty of €250,000 ($268,079) per week up to a maximum of €1 million ($1.07 million).
The National Postcode Lottery offers the Games Lottery category on its website, featuring titles such as Deal or no Deal, Suitcase Hunt, ONE Against 50, and Move That Truck. However, following an investigation, the KSA has determined that these online games are considered casino games and are not covered by the lottery license held by the group.
Similarly, the VriendenLoterij (Friends Lottery) also offers a Games Lottery that includes games like FriendsLottery Millionaires, Club-man, and Bingo Crush. These games have also been found to be online gaming titles that are not covered by the license granted to the lottery operator.
“Legislation and regulations make a clear distinction between lotteries and more risky games of chance, including online games of chance,” noted Kansspelautoriteit. The law requires a different license for such games, and it strictly prohibits the online offering of games linked to lotteries. The KSA said it remains committed to ensuring that lotteries and online games of chance remain separate entities.
In response to the penalties imposed by the KSA, the National Postcode Lottery and Friends Lottery have expressed their intention to appeal the decision. However, as a temporary measure, both lottery operators have agreed to halt the offering of the disputed games from June 8.
“The KSA is of the opinion that these free lottery games do not fit within the lottery license. However, the games are a form of entertainment and fit within the safe nature of a non-profit lottery with only one goal: to raise funds for good causes,” National Postcode Lottery and Friends Lottery stated.
The National Postcode Lottery and Friends Lottery argue that while the KSA considers the free lottery games to be outside the scope of their licenses, these games are purely for entertainment purposes and align with the safe nature of non-profit lotteries. They emphasize that such games have been a part of their offerings for the past 30 years and have always complied with the requirements of the lottery license.
The authority has already issued a series of penalties and sanctions this year, targeting various operators for non-compliance. And in a separate development, the Dutch finance minister’s report has indicated that the government is exploring new options for Nederlandse Loterij, including the possibility of privatization for the state-owned enterprise.
Original article: https://www.yogonet.com/international/news/2023/06/05/67395-dutch-regulator-imposes-penalties-on-two-lotteries-for-offering-games-not-covered-by-licenses
