The KSA had refused to issue a licence to a Malta-based gambling operator.

The Netherlands.- The Dutch gambling regulator Kansspelautoriteit (KSA) has won a legal battle over its rejection of a licence application from a Malta-based online gambling operator. The Hague District Court has ruled in favour of the regulator after the applicant appealed.

The case dates back to February 2023, when the KSA rejected a licence application from an unnamed provider due to its concerns about a former shareholder who was suspected of involvement in the murder of the investigative journalist Daphne Caruana Galizia in 2017. Caruana Galizia had been investigating a corruption scandal.

The KSA recognised that the shareholder was no longer connected to the provider, but it requested more information as part of the standard integrity tests that it conducts as part of the approval process. However, the information that came back was deemed to be “incorrect and evasive or incomplete”. As a result, the regulator rejected the application.

The applicant appealed, arguing that the shareholder in question had sold his shares in November 2021. It said it had moved to buy the shares as soon as it became aware of the allegations and had received clearance from the National Bibob Bureau (NBB), a Dutch agency that investigates the integrity of potential business partners. The provider also claimed that it had supported the new online gambling legislation in the Netherlands, including the introduction of the Cruks self-exclusion program and the Betblocker gambling blocking tool.

However, the Hague District Court ruled that the provider had submitted incorrect or incomplete information, which was enough to cause doubt about its reliability. This meant that the KSA had the right to refuse the licence application.

The KSA stressed that it has the duty to reject an application if it has any doubt about an applicant. It said: “Carrying out integrity tests is an important part of the supervision by the KSA. Ensuring the integrity of providers is 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.”

The provider has the right to appeal again.

Meanwhile, the Dutch online gambling association NOGA has expressed cautious support for the Netherlands’ proposed gambling reforms but says it wants more details on the proposal to raise the minimum age for online slots.

State secretary for legal protection Teun Struycken intends to produce draft legislative amendments by the end of the year to raise the age limit for “riskier” online casino games from 18 to 21. Other reforms are expected to include a universal deposit limit, with affordability checks to be required for players who want to increase their personal limit.