The KSA in Holland is taking severe action against companies that do not operate with a gambling license. There are plenty of gambling sites that cater to Dutch customers but do not register with the government. This means that their practices are not regulated and they do not pay taxes. In an attempt to curb these actions, heavy fines are being enacted.
There are two companies that have been hit with fines of close to $400,000 each. Redcorp and BlueMay Enterprises have been punished for their involvement with a few illegal gambling websites. These companies were found to be promoting the illegal website through advertisements, despite knowing that they were not registered with the country’s government. The KSA considers this a serious violation of gambling law. The sites were also warned of the potential repercussions of their association with these illegal sites, yet they did not cease activities.
Another way to limit the effectiveness of illegal sites is to shut down their payment services. For example, payment providers such as MasterCard, Sisow, Mollie BV, Currence and others have agreed with the KSA’s stance. They will not be allowing the sites to use their processing systems for withdrawals or deposits. This is a way to limit the customers that illegal sites can attract.
This is just the beginning for the KSA’s quest against illegal sites. They hope to have a majority of payment processing companies on board within the next six months. When that happens, the illegal sites will either have to obtain licenses or cease operations. “If the company cannot get money to or from a customer, their operations will shut down in due course,” said the KSA.
There have also been discussions in Holland about creating a 20% tax on all gross incomes from online gambling websites. The Dutch government is determined to get adequate tax revenue from online gambling operators.