BetCity becomes second firm fined by KSA after Kassa TV investigation

The Dutch Gaming Authority, Kansspelautoriteit (KSA), has completed its latest enforcement action, issuing a €400,000 fine against BetEnt, operator of BetCity.nl.

Betent has found itself to be the latest firm to fall under the KSA’s scopes for advertising infractions. The regulator has accused the firm of ‘targeting’ young adults between 18-23 years old with advertisements.

Notably, the fine is the second this year to be issued to a firm following an investigation by the Kassa consumer programme, which first raised concerns that BetEnt had been marketing its products to young consumers between 8 October 2021 and 16 March 2022.

René Jansen, Chairman of the KSA, said: ‘The law prohibits games of chance providers from targeting young adults with advertising. 

“The Gaming Authority monitors this closely and with these four sanctions it once again underlines how important it is that providers of games of chance respect the rules that are intended to protect vulnerable target groups.”

Kassa’s investigation into Dutch operator marketing and advertising approaches also led to a €400,000 charge against Hillside New Media, a Malta-based operating company of UK-headquartered bet365.

On a wider scale, the fine against BetEnt is the fourth enforcement action against a Dutch licence holder in the past six months for ‘untargeted’ advertising to young consumers.

Under Dutch law, betting firms must ensure that their marketing and advertising efforts are ‘targeted’ towards non-vulnerable groups, and must also not feature people of appeal to young consumers, such as football players.

In the one-and-a-half years since the KOA Act re-regulated the Dutch online gambling market, politicians and public figures have expressed concern about an apparent rise in gambling advertising, and its potential impact on young and vulnerable people.

The KSA explained in its statement on the BetEnt fine: “The brains of young people are still developing. As a result, they are extra susceptible to a gambling addiction.”

It is unclear whether or how the fine will be factored into Entain’s Q2 operating results, with the company having reported a 15% uptick in Net Gaming Revenues (NGR) in its Q1 2022 results.

Entain integrated BetCity.nl into its brand portfolio in January 2023, after first purchasing the firm in June 2022 for €850m as a means to re-enter the Netherlands, three months after the last advertising infraction was identified by Kassa.