The Netherlands Gambling Authority (Kansspelautoriteit, KSA) has issued a notification to TOTO Online B.V. for violating the Anti-Money Laundering and Countering the Financing of Terrorism Acts (AML/CFT). The gambling watchdog reprimanded the operator for failing to continuously monitor its business dealings and transactions after the initial verification of customers’ details. It also issued a €500,000 fine on LeoVegas for breaching consumer safety protocols.
Key Insights into the Netherlands Gambling Authority Reprimanding TOTO Online and LeoVegas
- The Netherlands Gambling Authority has issued a notification to iGaming operator TOTO Online for failing to continuously monitor Customers’ business relationships and transactions after the initial verification.
- TOTO Online has failed to validate why new facts or events have not led to an adjustment of clients’ risk classification, why it has taken control measures, and why it has not investigated the source of player deposits.
- The KSA penalised LeoVegas for failing to intervene in cases of players losing tens of thousands of Euros within a short span. Dutch law requires gaming operators to protect consumers against gambling addiction and financial harm.
KSA Finds TOTO Online in Breach of AML Guidelines
The Dutch Gambling Authority has instructed iGaming operator TOTO Online to explain why it has violated the Dutch AML/CFT Act, Wwft. The gambling regulator announced the violation in a press release published on Wednesday, December 24. TOTO Online B.V. offers games of chance in the Netherlands under the brand names TOTO and Winnitt.
The KSA noted that TOTO Online has failed to continuously monitor customers’ business relationships and transactions after the initial due diligence. The notice highlights that, in certain cases, TOTO Online has been unable to establish why new facts or events did not lead to an adjustment of clients’ risk classification and why it has taken control measures.
The gambling watchdog further labelled the investigation into the origin of players’ money as insufficient. Under Dutch law, Gaming operators must monitor gambling behaviour and investigate instances where large deposits are suddenly made. The KSA’s AML Guidelines highlight the risks associated with high deposits, even from players’ personal bank accounts.
This is part of the KSA’s wider initiative to regulate online gambling in the Netherlands. In July, the regulator banned gambling sponsorship in sport to protect minors and vulnerable individuals from gambling exposure. In September, it introduced new rules requiring gambling operators to submit exit plans while applying for a new licence.
TOTO Online has been cooperating with the KSA’s investigation, the officials have confirmed. The company had addressed some of the violations even before the watchdog had raised the issue. The gambling operator has six months to resolve the remaining concerns, following which the KSA will conduct another round of inspection.
KSA Penalises LeoVegas for Failing Duty of Care
This is not the first time that the Kansspelautoriteit has reprimanded gambling operators for skirting the law. On December 22, it issued a €500,000 penalty on LeoVegas for failing to uphold player protection standards between October 2023 and May 2024. Officials reviewed multiple player accounts and observed a pattern.
LeoVegas had, on several instances, violated the duty of care. It had failed to intervene in cases where players deposited large amounts of money within a short span, leading to them losing “tens of thousands of Euros”. In other instances, the interventions weren’t effective enough.
The KSA cited the example of a player who showed serious signs of immoderate gambling behaviour. Instead of taking strict measures, such as prohibiting them from depositing any further, LeoVegas initially only showed a pop-up indicating the player’s playing behaviour, which was convenient for them to ignore.
Speaking to the press, Michel Groothuizen, Chairman of the Board of the KSA, emphasised that LeoVegas had failed to perform its duty of care. He explained that large deposits within a short span are a sure sign of gambling harm, and the KSA is proactively working to prevent such situations from arising in the future.
Groothuizen said:
The duty of care is an essential part of the broader range of player protection. Providers must respond adequately to immoderate play. Large losses in a short period of time are an important signal of this. We have intensified our supervision of the duty of care and are tackling gambling providers, because such an important part must not be neglected.
Proactive measures such as these will foster transparency, accountability and responsibility within the sector. The Dutch Gambling Authority has been consistently monitoring new trends and charting new plans for better oversight and enforcement. Last week, the regulator announced an organisational restructuring for improved player protection. All eyes are now on the gaming authority’s next steps.