KSA Imposes Penalty Payment Order to Luxurybingods

The Dutch gambling authority, the Kansspelautoriteit (KSA) announced that it has imposed a penalty payment order to Luxurybingods, an operator that offered and promoted unauthorized bingo games in the Netherlands.

Luxurybingods Offered and Advertised Unlicensed Bingo

The KSA emphasized that Luxurybingods targeted Dutch audiences with bingo content that violated the local rules. The KSA first got wind of the company’s unlicensed operations in March this year.

Representatives of the authority visited the Harbour Club in Eindhoven on March 27 and noticed that Luxurybingods had been organizing a bingo event despite lacking the necessary permit. Supervisors understood that the event in question had been extensively promoted on TikTok. Supervisors also learned that tickets for the event cost €65 and that the value of the prizes exceeded what the Dutch law permits.

KSA representatives added that the games were organized for the benefit of the operator itself.

The Kansspelautoriteit clarified that bingo games can only be organized by an association that has existed for three or more years and has not been established to organize games of chance. In addition, the prizes offered by such games should not exceed certain sums. Lastly, the Dutch law prohibits operators from advertising such games of chance.

Not the First Time Luxurybingods Has Violated KSA’s Rules

The regulator therefore concluded that Luxurybingods had violated multiple rules.

The KSA noted that the fine for organizing an illegal bingo game is €19,000 per game to a maximum of €190,000. There is a separate applicable fine for the advertising of such games, which stands at €9,500 per advertisement to a maximum of €95,000.

According to the KSA, the chance of a similar violation by Luxurybingods is very high, considering the operator’s track record. The authority noted that the company had previously offered illegal online lotteries in 2022, which it promoted via its Instagram account.

The Netherlands to Increase Its Gambling Tax

In other news, the Netherlands just proceeded to implement its gambling tax hike, much to the legal gambling industry’s dismay. Despite the publication of a report that suggested the measure would have adverse effects on the local market, the government decided to still increase the tax on gambling.

This move was extensively criticized by a Dutch law firm, which suggested that the government is “deaf” to the industry’s concerns.