Key Moments:
- The Netherlands Gambling Authority (KSA) fined BetCity €2.65 million over responsible gambling shortcomings.
- The regulator’s investigation covered player losses from October 2021 to March 2023, ahead of Entain’s acquisition of BetCity in January 2023.
- BetCity’s appeal was dismissed in August after the KSA ruled the operator did not respond adequately to high-risk behavior among young adults.
Background on the Regulatory Penalty
BetCity received a €2.65 million fine from the Netherlands Gambling Authority (KSA), following an investigation into the operator’s handling of young adult players. The review looked specifically at player losses from October 2021 until March 2023, before Entain took over BetCity in January 2023.
KSA’s Findings on Player Protection
The KSA determined that BetCity fell short of its legal duty of care, particularly in monitoring player conduct and intervening during instances of excessive or risky gambling activity. The regulator identified significant failures in safeguarding young adult players, with some individuals suffering substantial losses in condensed timeframes.
| Player Age Range | Largest Annual Loss Observed | Largest Single-Month Loss |
|---|---|---|
| 18 – 23 | €80,000 | €43,000 |
In one case, a player lost more than €63,000 over a year, including €43,000 in just a single month. Another individual accumulated €80,000 in losses without any intervention or adjusted limits. The KSA asserted that BetCity either delayed its response or failed to address clear warning signs associated with excessive play.
Appeal Outcome and Official Reactions
BetCity’s attempt to challenge the fine and related disclosures was unsuccessful; in August, the regulator ruled that the company’s objections were unsubstantiated. In the words of Michel Groothuizen, KSA Chair:
“We have a licensed gambling market based on the principle that anyone who wants to gamble can do so safely. Therefore, providers have a duty of care to their players and must respond appropriately to excessive gambling. Large losses are an important signal of this. We have intensified our oversight of the online duty of care, and we are taking strong action against violations like those we observe here at BetCity. We truly do not want to see providers fail so badly in their duty of care, especially for vulnerable young players.”
Operator’s Response and Changes
A BetCity spokesperson stated:
“We acknowledge the KSA’s findings in this case. This legal action concerns the historical failures of BetCity’s previous owner and management, Sports Entertainment Media. Since acquiring BetCity in January 2023, Entain has thoroughly reviewed and significantly strengthened all operational processes to enhance player protection and maintain best practices in responsible gambling.”
Impact for Investors and Market Observers
This enforcement by the Dutch regulator demonstrates an increasing emphasis on player protection, particularly regarding younger demographics. The decision also indicates a growing readiness by authorities to hold operators accountable for safeguarding customers in the online gambling environment.
- Author
Daniel Williams
