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Tipico Fined by the KSA After Offering Illegal Gambling to Dutch Gamblers
Dutch authorities issued a fine to Tipico for illegal gambling. The authorities claim the operator offered Dutch gambling services to customers without proper authorization from the KSA. Tipico is not the first operator to receive fines. The country has in the past slapped brands such as LeoVegas, 1xBet, The Stars Group, and Royal Panda with fines.
Illegal Gambling by Tipico Results in a Fine
Tipico will now have to pay a €530,000 fine. The fine came a few days before the country’s launch of its newly-regulated market. The Dutch gambling regulator, KSA, says it opened investigations into the operator in January 2020. The investigations showed the operator remained accessible to Dutch gamblers. Plus it included the Netherlands as an option to register from in its registration form.
The KSA further stated that Tipico made no effort to inform players from the jurisdiction about the legal status of gambling from the country. Domestic laws prohibit gambling from the country. But the terms and services indicated the site is available in jurisdictions where the laws allow gambling.
The investigators even went ahead to deposit funds in Dutch. Plus they uncovered the operator incorporated the native language to allow Dutch players to navigate the site easily. Investigations also revealed at least 5,000 transactions took place over a few months in 2020.
The KSA further monitored the situation by attempting to create an account using a Dutch IP. It succeeded. KSA concluded Tipico may not have conducted proper due diligence when it came to verifying the customers’ ages.
Tipico Claims Innocence
Despite the damning allegations by the KSA, Tipico claimed innocence at that time. It responded early this year in January saying it never targeted the country nor its players with its products.
It also dismissed claims by the KSA that it failed to conduct proper due diligence when verifying customer age. Tipico went ahead to remind the KSA that it never used popular Dutch payment methods to popularize its offerings.
But the KSA put out a statement dismissing claims it investigated companies offering their services to Dutch players. It also went ahead to remind Tipico of the ability of the investigators to read the Dutch language when depositing funds. And that it didn’t find evidence the operator verified all ages.
The result of these breaches is a fine of up to €870,000 according to the criminal code. But the regulator started by issuing a €200,000 fine for offering unregulated gambling. It would later increase the fine by €75,000 each for offering online casino and live bets.
It also added another €75,000 as “inactivity fee” it introduced. This fee charged players for holding money in their accounts without playing. The fine would later rise by 25% to sit at €531,250 because the operator failed to provide proof it followed age verification regulations.