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Videoslots Casino fights back against €9,8m KSA fine

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After KSA issued a massive fine of nearly €10 million, Videoslots Casino has fought back and stated that the regulator has acted unlawfully.

Online gambling regulators around the world are in place to uphold the laws in place and protect players. They do this by holding casinos to high standards and ensuring that every necessary protocol is met.

While regulators are seen as the highest law in cases where online gambling and online casinos are concerned. But that doesn't mean they're always right about their decisions.

Videoslots fined by Dutch KSA regulator

The popular online casino, Videoslots, was recently fined a staggering €9,874,000 for what appears to be an innocent mistake and unlawful acts on the part of the KSA.

Now, Videoslots is fighting back, and they're claiming that the KSA is abusing the "mystery shopping regime" they've created. But why were Videoslots fined at all?

Here's the timeline of events:

  • April 2022 - Videoslots Casino applies for a license from the KSA.
  • Shortly after that, the KSA logo appears in the footer of the Videoslots website.
  • Videoslots spots the error and quickly removes the logo.
  • KSA is made aware of the issue and attempts to sign up at Videoslot as a Dutch player. Protocols in place prevent this from happening.
  • Unauthorised access is then gained to the site when the KSA pretends to be a German customer.
  • The fake KSA profile signs up, makes a deposit and places a single bet of 20 cents.
  • Videoslots learns of the fake sign-up and puts extra security measures in place to prevent this from happening again.
  • The KSA said that Videoslots has been fined almost €10 million for violating the Dutch Gaming Act.
  • Videoslots immediately denies the allegation and objects to the fine.

Fighting back

It's clear to see that the operator did everything they could to fix, update and prevent any unlawful playing at their casino. Unsurprisingly, the fine was a complete shock and has been fought.

Ulle Skottling, Deputy CEO at Videoslots, commented on the massive fine, saying:

"Videoslots does not target but restrict the Netherlands, so the Dutch Gaming Act does not apply to its services. No Dutch players were able to access our site during the disputed period, and there was no violation as a result.

It is absurd that the Ksa should fine us after gaining unauthorised access. It is simply not possible to protect fully against unauthorised access, and the Ksa has no guidelines on what measures are sufficient. Furthermore, there was no demonstrable damage, and the interests of Dutch consumers were never compromised at any point. The Ksa calculated the fine based on several guesstimates. There is no basis for it, and all sense of proportionality is missing.

Videoslots takes its legal and regulatory obligations extremely seriously, but we dispute the KSA's actions and conclusions, which we believe are unlawful. We are confident of a positive outcome in this case."

KSA continues to fine operators

Now that Videoslots has started legal proceedings, it is up to the courts to decide who is in the wrong. Considering the circumstances, the operator believes they have a strong case, and it would be surprising for the legal system to side with the KSA.

However, this is also not the first time that the KSA has recently dished out heavy fines to operators. A total of five operators have received fines to the tune of more than €26 million in recent years.

René Jansen, KSA chairman, commented: "We mean business. Player safety is paramount. A fine is to hit where it hurts, so in the wallet. With such amounts, we think we can impose an appropriate sanction, given the illegal earnings."

Whether the court will agree that the KSA is in the right or will side with Videoslots remains to be seen. Keep an eye on CasinoWow news for more information.

Published: March 12, 2023

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Article by Stelly

CasinoWow Contributor

Hey there! I am Stelly, and happily, I'm part of CasinoWow's content team. It excites me to be able to write and share with all gambling enthusiasts unbiased reviews and news that contribute to the gambling community and industry. Thankfully, I also have the chance to help you make an informed choice for casino brands and games, as well as provide interesting guides and news.

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