The Dutch gaming authority, the Kansspelautoriteit (KSA), has levelled a €400,000 ($428,000) penalty against Bingoal for its advertising strategy, perceived as enticing young adults.
Approach to Young Adults
Bingoal finds itself facing a substantial monetary penalty, marking it as the fifth gambling operator targeted by KSA in this ongoing investigation. Allegedly, the companies are breaking the rules by aiming their advertising for games of chance at a youthful demographic.
As per findings from the KSA investigation, Bingoal violated certain critical provisions of the Betting and Gaming Act, specifically Article 2, Paragraph 4, preamble and (a) of the Decree on Recruitment, Advertising, and Addiction Prevention of Games of Chance. Between October 12, 2021, and March 15, 2022, Bingoal targeted individuals aged 18 to 24 with its advertising practises.
The age group of 18 to 24-year-olds is considered particularly vulnerable to the pervasive allure of gambling, and at this age, the potential for addiction is heightened. Thus, to prevent this risk, the law explicitly prohibits operators from directly advertising to this demographic.
Observance of the Legal Certainty Principle
Bingoal, while not denying the fact that it sent advertisements to young adults during the period under scrutiny, contended that the messages were essentially not aimed only at young adults. Instead, they were general advertising messages intended for all players. Bingoal posited that the simple fact that their messages may have reached young adults does not automatically equate it to a violation of Article 2, Paragraph 4, (a) of the advertising and addiction prevention decree.
The company emphasises the span of interpretation for the legal standard phrase, “aiming at,” claiming it could be related to the content of the advertisement rather than its range. Thus, the company argues, the standard itself might stand against the principle of legal certainty or lex certa.
Bingoal concludes that it did not deliberately target young adults with its ads and retains that it did not infringe upon Article 4a, Paragraph 2 of the Betting and Gaming Act or Article 2, Paragraph 4, preamble and (a) of the decree on advertising and addiction prevention.
Second Offense of the Operator
This brings to its second financial penalty for Bingoal in 2022, coming on the heels of a €350,000 ($375,000) penalty incurred in February. The earlier penalty was levied by the Dutch Gaming Authority after they found the operator had violated regulations associated with Cruks, the national gambling self-exclusion registry.
Another operator, the Merkur Casino Almere, was recently fined €45,000 for several instances of permitting a client registered with Cruks to enter their premises for gambling.
