Lottery Companies Warned by Kansspelautoriteit for Unlicensed Games

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The Kansspelautoriteit, the Netherlands' gambling regulator, has recently issued a stern warning to two lottery companies for offering games without the necessary licenses.

The National Postcode Lottery and the Friends Lottery were found guilty of providing games that are considered high-risk games of chance, falling outside the scope of their existing licenses.

The KSA has demanded that the operators remove these problematic offerings from their platforms immediately. Failure to comply could result in penalties, with each company facing potential fines of $268,000 per week, up to a maximum of $1,073,175.

The National Postcode Lottery's website was found to feature several games that can be categorized as online gambling, such as Deal or No Deal, Suitcase Hunt, ONE against 50, and Move That Truck. These games are not covered under the lottery license held by the National Postcode Lottery, violating local regulations.

Similarly, the Friends Lottery offered titles like Club-man and Bingo Crush games, which are also classified as online games of chance. The Friends Lottery lacks the necessary license to legally offer such games.

The Kansspelautoriteit has emphasized the importance of distinguishing between low-risk lottery games and high-risk games of chance, such as online gambling. To reinforce this distinction, the Netherlands has different licenses for lotteries and online gaming, as well as specific rules.

Online lotteries are strictly prohibited in the country, and gambling companies can only sell participation tickets online. However, the games offered by the National Postcode Lottery and the Friends Lottery clearly cross the line by unlawfully linking online gaming with lottery companies. The Kansspelautoriteit is determined to maintain a clear separation between the two verticals to protect customers from harm.

In response to the warning, the National Postcode Lottery and the Friends Lottery have stated their intention to appeal the Kansspelautoriteit's ruling. They argue that their games are safe and intended to raise funds for good causes, in line with their licenses.

Both companies emphasize that their additional games do not offer instant rewards to players. Instead, similar to traditional lotteries, a draw takes place, and prizes are awarded afterward. Based on this reasoning, the National Postcode Lottery and the Friends Lottery believe that their products are entirely legal.

Kansspelautoriteit Doubling Down on Upholding Gambling Integrity

The Kansspelautoriteit's actions reflect its commitment to upholding the integrity of the gambling industry in the Netherlands. By enforcing regulations and ensuring a clear distinction between lotteries and online gaming, the regulator aims to safeguard consumers from potential risks associated with high-risk games of chance.

As the National Postcode Lottery and the Friends Lottery prepare to contest the ruling, the outcome of this case will have broader implications for the regulation and operation of lotteries and online gambling in the Netherlands. The Kansspelautoriteit remains steadfast in its mission to protect customers and maintain a fair and transparent gambling environment in the country.

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