Malta-based LCS Limited to Appeal €2.1 Million Fine by Dutch Regulator

On October 12, the Dutch regulator, KSA, issued a substantial fine of €2.1 million to LCS Limited for unlicensed activities in the Netherlands. KSA alleges that LCS, which is licensed by the Malta Gaming Authority (MGA), offered gambling services through its Sonofslots.com website without the required Dutch approvals. This ruling follows a year of legal disputes, with the initial penalty decision dating back to August 2022 when KSA imposed a €165,000 fine on LCS and ordered the operator to cease unlicensed gambling operations.

Under the Dutch Betting and Gaming Act (WOK), all operators must hold local licenses to legally offer gaming services in the Netherlands. KSA initiated its investigation of LCS in March 2022.

In response to the fine, LCS has strongly criticized KSA's decision to impose such a significant penalty. LCS has stated that it will appeal this decision. The company argues that the €2.1 million fine is undeniably excessive and unjust, given the circumstances. LCS emphasizes that the fine pertains to a single, accidental violation that occurred in early 2022 and that immediate corrective action was taken.

LCS is committed to complying with Dutch law and emphasizes that it took swift measures to prevent Dutch customers from registering on their platforms after the violation. LCS also points out that the KSA acknowledged its inactivity in the country since September 2022, indicating compliance with Dutch regulations.

LCS further questions the methodology used by KSA to arrive at the €2.1 million figure, describing it as "flawed." The company argues that the total is based on estimated figures that have since been proven incorrect. As a result, LCS is determined to aggressively pursue an appeal against this decision.

LCS refutes recent media reports that suggest the company has re-entered the Dutch market, affirming that it remains committed to upholding compliance and fairness in its operations. LCS, along with its legal representation, Blenheim Advocaten, is confident that the KSA ruling will not withstand their appeal.