Court upholds KSA decision to refuse Malta-based provider due to links to murder case
After the KSA refused the provider a licence, the company filed a lawsuit saying it had “made large and time-consuming investments to obtain the permit” and as such, the Authority “must grant” it.
Key points:
– The KSA refused a licence to the Malta-based provider
– The provider had refused to give information regarding a shareholder involved with the murder of a journalist
– The District Court of The Hague has agreed this is enough to make a judgement on the company’s integrity
The Hague has upheld the decision made by the Kansspelautoriteit (KSA) to refuse a Malta-based provider a licence to operate in the Netherlands.
This is the first time a court has ruled on an integrity test for online gambling providers.
The initial refusal was made in 2023 when, during the integrity tests, the unnamed provider refused to give the Dutch regulator necessary information regarding one of its shareholders, who was suspected of being involved with the murder of an investigative journalist working on a major corruption scandal in Malta.
According to the court documents, this scandal “presumably also extended to the gambling industry in Malta” and so “there is a serious risk the permit will also be used to commit criminal offences, because the claimant would still be in relation to its former shareholder”.
The provider argued that the shareholder in question had been bought out in late 2019 after the company “became aware of the suspicions” and had severed all ties immediately.
The company also claimed it was a reliable party because it had sponsored Betblocker, a responsible gambling tool.
However, during court investigations, it was uncovered that the shareholder in question still had several ties to the company.
The court documents ruled that: “The fact that she nevertheless declared, without any reservations, that there would be no relationship whatsoever between persons involved in the activities of her company and [the shareholder] therefore detracts all the more from her reliability.”
The KSA stood by its refusal, saying: “The mere fact that the company provided incorrect/incomplete information is enough to conclude that the reliability of the company is not beyond doubt.”
Although The Hague has declared the provider’s appeal as unfounded and the rejection is therefore upheld, the provider can still appeal in the future.
As for the Malta Gaming Authority (MGA), the regulatory body has just announced a new supervisory focus, citing an enhancement in its oversight approach as part of a new policy for the year ahead.
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