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KSA Orders Market Withdrawal for LCS Brands

Since officially launching on October 1 last year, the Dutch online gambling market has swiftly become one to be reckoned with, as far as legislation goes, with the gambling commission; Kansspelautoriteit (KSA), appearing to be one of the strictest in the world.

As such, Malta-based LCS Limited has recently been ordered to withdraw from the Dutch market after repeatedly failing to comply with legislation.

The ‘cease and desist’ order, in place for offering games of chance that are illegal to online players in the Netherlands, which flout laws that have been established by the KOA Act has been imposed with immediate effect.

LCS at Risk of Significant Fines

Should LCS disregard this order, it could be facing heavy financial penalties, which it is lucky not to have received already, after the KSA determined that its brands were failing to safeguard its players.

Such fines could be €55,000 per week, with this potentially reaching €165,000 if the company does not act swiftly.

With a licence from the MGA (Malta Gaming Authority), this is typically considered a reputable company, though it appears that the KSA has found one of its brands offers games of chance.

KSA has established that LCS Limited offers games of chance to Dutch consumers via at least one website.
The board of directors of the Gaming Authority instructs LCS Limited to cease and to stop offering games of chance for which no license has been granted under the Gambling Act by means of an order subject to periodic penalty payments.

KSA Statement

Emphasis from KSA to Build a Healthy Gaming Market

Since inception of the newly regulated Netherlands market last year, the KSA has held firm in its strict approach, arguably establishing itself as the firmest gambling commission in the industry.

Its application and approval process for new operators is particularly stringent, with each one needing to have a lot of things in place before they are allowed to onboard customers.

Even advertising laws have been completely redefined in terms of what and how operators are allowed to promote their services and the wording that is acceptable.

LCS has a number of brands under its umbrella, most notably, Sven Play, Lapilanders, Sons of Slots and Wallace Bet, each of which has a modest userbase of customers, however, none of these have been officially recognised by the Dutch market.

It is understood that the KSA wants to completely clamp down on operators that are offering what it deems to be ‘illegal’ services in the Netherlands and are almost uncompromising in their stance.

The fact that the KSA has first issued a warning to LCS, instead of proceeding immediately with punishable action is perhaps surprising based on the reputation that it has started to gain for itself.

While the tough penalty sanctions that were implemented upon launch of the regulated market last year have really yet to make an example of an operator in significant fashion, this latest development may just see LCS being the first, biggest scalp if they refuse to comply.

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RELATED TOPICS: Regulation

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