- REGULATION & COMPLIANCE
Kansspelautoriteit (KSA), the Netherlands gambling regulator, has imposed a ban on hosting provider DigitalOcean from providing services to illegal affiliates websites.
DigitalOcean are accused by KSA of facilitating illegal gambling offers on casinozonderregistration.net and nieuw-casinos.net. Both sites are operating without the correct licence according to the regulator.
KSA issued a binding order to DigitalOcean following an investigation that unfolded throughout 2023. A binding order is usually given in cases where an infringement has occurred, but a sanction is not yet deemed appropriate.
Initially, the investigation focused on two websites – Casinozonderregistration.net and Nieuwe-casinos.net. The regulator was not able to find or contact the owners of the websites. However, it was able to detect DigitalOcean as the hosting provider.
For this reason, KSA’s board decided to issue the binding order to DigitalOcean alleging violations of Article 1, paragraph 1(b) of the Netherlands’ Gambling Act. This section of the Act prohibits the promotion of, or participation in, gambling offered by unlicensed entities.
Upon being contacted by KSA regarding the two websites, DigitalOcean confirmed that it was the host. However, DigitalOcean said it would not cease hosting the websites without a court order, despite KSA ruling that Casinozonderregistration.net and Nieuwe-casinos.net were offering games illegally.
In a letter dated 22 September 2023, KSA confirmed that it intended to impose a binding order. In response DigitalOcean again asked for a court order before they address the case.
Court action
The District Court of Rotterdam authorised KSA to continue its action against DigitalOcean on 26 January 2024. In issuing the binding order, KSA instructed DigitalOcean to cease and desist from violating Article 1, paragraph 1(b) of the Netherlands’ Gambling Act by 22 March 2024. This must be done by taking “all necessary measures”. If DigitalOcean does not comply, KSA can impose a penalty or issue a fine.
DigitalOcean can lodge an appeal against this decision. The binding order comes days after KSA entered into an agreement with Cloudflare. Cloudflare will aid in identifying those offering illegal gambling services in the Netherlands.