The Dutch Gambling Authority (Kansspelautoriteit, KSA) has levied a substantial penalty on the operator of Freebitco.in, FBC B.V., for offering illegal gambling services to Dutch residents. The fine, which could reach up to €840,000 ($871,364), stems from the operator’s failure to comply with local gaming regulations.
In a move that highlights the Dutch government’s commitment to consumer protection in the gambling sector, the KSA took enforcement action after uncovering that players in the Netherlands could access the site, create accounts, deposit funds, and play games of chance without the necessary local license. This breach of Dutch gambling laws has now led to significant financial repercussions for the operator.
Freebitco.in’s Breach of Dutch Gambling Laws
Freebitco.in, a platform that claims to have over 54 million global users, has been under scrutiny for offering unlicensed gambling services in the Netherlands. Despite multiple warnings from the KSA, the website remained accessible to Dutch users. The games offered included hi-lo jackpots and lotteries, which were primarily played using Bitcoin.
The KSA’s investigation revealed that these activities were in direct violation of Dutch gambling laws, which require operators to hold a valid local license to ensure that gambling activities are fair, transparent, and protective of consumer interests. The regulatory body’s primary concern is the lack of adequate safeguards for Dutch players, as Freebitco.in was not subject to the oversight of local authorities.
The penalty was first announced on November 15, with FBC B.V. being granted a four-week period to stop operating in the Netherlands. This period expired on December 13, but as of that date, the website remained accessible to users in the country, leading to the imposition of further penalties.
Repeated Warnings and Compliance Failures
Throughout 2024, the KSA conducted several investigations into Freebitco.in, confirming that Dutch players could still access the platform despite earlier claims that the site had blocked users from the Netherlands. In August, FBC stated that they had taken action to restrict access to Dutch users, but technical issues reportedly delayed the implementation of the block.
By September, Freebitco.in requested an extension to comply with the regulations, citing internal disagreements and further technical difficulties. However, no corrective measures were taken, and by November, the KSA confirmed that the site was still operational for Dutch players.
The regulator has since labelled the ongoing offering of illegal gambling services as a “very serious” violation of Dutch law. The KSA has emphasized that the country’s gambling market is heavily regulated to protect players, and illegal offerings undermine this system.
Financial Penalties and Future Consequences
FBC B.V. now faces a substantial financial penalty for its continued non-compliance with Dutch regulations. Initially, the operator was given a €840,000 penalty, which could increase by €280,000 per week if Freebitco.in does not cease operations in the Netherlands. The site’s ongoing violation could lead to even more significant fines if corrective measures are not implemented swiftly.
This case serves as a stark reminder of the Dutch government’s commitment to curbing illegal gambling activity. The KSA has made it clear that it will continue to take a firm stance against unlicensed operators to ensure that the gambling market remains safe and secure for players.
The operator’s refusal to take corrective action has left them with little option but to comply or face severe financial consequences. While Freebitco.in’s future in the Netherlands looks uncertain, the case signals to other operators the importance of adhering to local regulations to avoid costly penalties and reputational damage.
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