€3.1 Million Penalty Imposed by KSA on Chestoption, a Costa Rica Gaming Platform
The Netherlands Gambling Authority (KSA) has taken a firm stance against illegal online gambling activities, imposing a hefty €3.1 million fine on Chestoption Sociedad de Responsibilidad Limitada, based in Costa Rica. The charge stems from the operator offering gambling services within the Netherlands without holding the necessary license.
The KSA’s investigation revealed that Dutch players could easily sign up, deposit funds, and enjoy casino games through three websites run by Chestoption: Vave.com, Vave-luck.com, and 67evav55.com. In its official ruling, the regulator pointed out that these sites were at least partly aimed at the Dutch market. Evidence included Dutch-language affiliate content promoting the platforms, betting options tied to the Eredivisie top football league, and a noticeable lack of measures to prevent Dutch residents from accessing the sites.
The KSA also identified several concerning practices that added weight to the case against Chestoption. Notably, the absence of visible age verification checks, the availability of autoplay features which are banned in the Netherlands and the acceptance of cryptocurrency payments, which complicate regulation. Further issues involved withdrawal conditions that appeared designed to keep players engaged in gambling activities. Players faced requirements to wager their funds multiple times before being able to withdraw, and certain terms restricted their ability to access their balances freely. The regulator indicated that these conditions effectively encouraged continued betting before allowing cashouts.
The KSA emphasized that this was not Chestoption’s first brush with regulatory action. The authority previously instructed the operator to stop offering unlicensed gambling services last December. Despite this, inspections found the sites still accessible to Dutch users, prompting the KSA to demand €840,000 in penalties.
Chestoption has six weeks from the date of receiving this latest fine issued on June 9 to challenge the decision by lodging an objection with the KSA.
The regulator underscored its approach: “Taking action against illegal offerings is not limited to administrative fines but also involves intensive cooperation with third parties, such as payment service providers, hosting parties, banks, and major tech companies,” it stated.
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In a separate case, the KSA announced that another unnamed company faces a €450,000 penalty for organizing an illegal promotional lottery. While promotional lotteries are permitted under strict conditions, such as free entry and a limit of once per year this company allegedly conducted multiple raffles involving cars, often with “some regularity.” Customers who purchased certain services or products were entered into draws to win vehicles.
After receiving multiple reports and informing the company of the rules, the KSA continued to see the company run prize draws. As a result, the regulator issued the penalty order. If the company persists in running unauthorized lotteries, it could face fines of €150,000 per violation, up to €450,000 in total.
