KSA Slaps €400,000 fine on BetEnt for Advertising Breaches

The Dutch gaming authority, Kansspelautoriteit (KSA), has fined BetEnt, a gambling provider, €400,000 for violating advertising regulations. The KSA stated that the Entain-owned company had targeted young adults between the ages of 18 and 24, which is not allowed in the country.

The regulator initiated an investigation into BetEnt after the broadcast of Kassa, a consumer-oriented TV program that investigates and tests products and services. The program reported that BetEnt, which operates in the Netherlands as BetCity, sent advertising messages to young adults between 18 October 2021 and 24 March 2022.

According to the KSA, this is a serious breach as young adults are a vulnerable target group and that their brains are still developing, making them more susceptible to gambling addiction. Therefore, advertising aimed at this group is prohibited in the country.

Upon further investigation, the regulator discovered that BetEnt had sent messages to young adults in its online gambling customer base on its website, Betcity.nl, between 8 October 2021 and 16 March 2022. Although Entain is the parent company of BetEnt and BetCity, the advertising violations occurred six months before the gambling giant acquired the Dutch firm in June 2021.

KSA Chairman, René Jansen, emphasized the importance of gambling providers respecting the rules intended to protect vulnerable target groups. “The law prohibits gambling providers from targeting young adults with advertising. The Gaming Authority closely monitors this and, with these four sanctions, once again underlines the importance of gambling providers respecting the rules intended to protect vulnerable target groups,” he said.

This is not the first time that BetEnt has been in trouble with regulators. In January 2022, the company was fined €130,000 by the Swedish regulator, Spelinspektionen, for failing to implement adequate measures to prevent money laundering and terrorist financing.

The fine is the latest in a series of penalties imposed on gambling providers by the KSA following investigations initiated by the TV program Kassa. Just recently Bet365‘s Hillside New Media, Malta was issued a similar fine.

The gambling industry has faced increased scrutiny from regulators worldwide, particularly regarding the protection of vulnerable players. Gambling providers are expected to implement measures to prevent underage gambling and to promote responsible gambling.

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