Orient Xpress Casino operators have brought an appeal against the Dutch Gambling Authority (KSA) regarding a fine of €1.6 million.

The operators in question are Equinox Dynamic and its subsidiary Domiseda, who were both fined in February by the KSA for offering their Casino product to Dutch consumers without an adequate Dutch licence.

The Appeal

The companies’ objection is that the penalisation was too high related to the infringement, claiming that although it is true that gambling was offered to Dutch consumers, this was due to what they described as a “systems error”.

Furthermore, there had been no infringement on the part of the Slovakian-based subsidiary of Equinox, Domiseda, as the operators attested to the authority:

Domiseda is a subsidiary of Equinox and is used to handle payments, has no control/control over the website and does not own/operate the website.

The operators also complained that once they were made aware an infringement had occurred this oversight was quickly adjusted, no longer accepting Dutch player’s onto the site.

KSA rejection

This was promptly rejected by the KSA who highlighted in addition that these infringements would also need to be resolved from the perspective of the Slovakian regulations, of which Domiseda are bound.

Despite denying access to Dutch customers after being made aware, the KSA argued that this made no difference whatsoever to the initial offence.

Equinox’s Dynamic

Interestingly, Equinox Dynamic itself was not referenced in the dismissive response from the KSA. Possibly pertaining to the complexities of the company’s direction situation, being located in the Dutch constituent of Cura?ao.

While both Slovakia and the Netherlands itself have stringent iGaming legislation in place, which includes a comprehensive licencing process and specific regulations for both foreign and internal operations, Cura?ao is subject to a far more lenient regulatory framework.

Cura?ao-based operator

Cura?ao is an autonomous nation and despite being a part of the Kingdom of the Netherlands, possesses its own independent regulations.

Known for its eGaming license, Cura?ao, allows operators based on its shores to offer online gambling services globally.

In this sense, it could be understood that Equinox is legally permitted, by Cura?ao legislation, to offer gambling activities within the Netherlands without obtaining a licence from the KSA or even adhering to any regulation that is not stipulated by the legislation in Cura?ao.

Gammix case

Equinox and Domiseda also cited the case of Malta-based Gammix’s penalisation, where the KSA initially opted for a sequence of escalation penalties as opposed to a one-time fine.

In counter to this further argument, the KSA explained that subsequent to issuing these escalating fines, the decision was taken to replace these with an outright penalty of €4.41m instead, marking a precise similarity to the cases.

Multiple fines contested

The KSA’s more aggressive approach has unsurprisingly been met with a judicial push-back from almost every operator to have received a fine.

Malta-based N1 interactive and Videoslots have both received fines for allegedly providing offshore gambling products to customers within the Netherlands.

These hefty fines of €12 million and €9.87 million respectively, have both been subject to contest on behalf of the operators.

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