Dutch Gaming Authority cracks down on unlicensed crypto casino operator
The Dutch Gambling Authority (Kansspelautoriteit, or KSA) has imposed a binding enforcement on Chestoption Sociedad de Responsabilidad Limitada. The company operates multiple crypto-based gambling websites, including vave.com, vave-luck.com, and 65avev55.com, all of which were accessible to Dutch players without the required licensing or restrictions.
With this enforcement order, the KSA demands that the company immediately cease and desist from offering these illegal services. If the provider fails to comply, a penalty of €280,000 per week will be imposed, up to a maximum of €840,000.
KSA investigation reveals lack of geo-blocking
Following a detailed investigation, the KSA concluded that Chestoption allowed players from the Netherlands to create accounts, deposit cryptocurrency, and access various online games despite having no licence to operate in the country. The operator failed to implement basic compliance measures such as geo-blocking, and did not maintain an updated list of restricted jurisdictions.
The KSA noted that these omissions breached Dutch gambling regulations, which require strict protective measures against unlicensed access.
Licence history and current status
Chestoption previously operated under a Curaçao online gaming licence, which has since been revoked following a change in company management. The operator now claims to be functioning under the laws of Costa Rica.
However, Costa Rica does not offer any formal iGaming licensing framework. It lacks regulatory oversight, compliance mechanisms, and consumer protection systems, making it an unsuitable jurisdiction for legal online gambling operations.
Costa Rica: regulatory grey zone
Fernando Garita, CEO of Betsul confirmed that Costa Rica does not issue formal online gambling licences and does not regulate or monitor online casinos, as per reports. As a result, any operator based there is essentially functioning without legal supervision.
This means players have no recourse in case of disputes, and authorities have limited power to enforce compliance or protect consumer interests.
KSA hits Starscream with €280,000 weekly fine
The Netherlands’ gambling authority, on 22 April has issued a formal enforcement order against Starscream, an online casino operator, for offering illegal gambling services to Dutch players. The company now faces a recurring weekly fine of €280,000, with a maximum penalty capped at €840,000.
According to the KSA, Starscream breached national gambling laws by failing to block access to its casino platforms – rantcasino.com, sugarcasino.com, and allstarzcasino.com – for players based in the Netherlands. The investigation revealed that the company’s inadequate geoblocking measures enabled unlicensed gambling services to be accessible from within the country.
As per Dutch law, online gambling operators must hold a licence from the KSA to legally offer their services to Dutch consumers. Starscream does not possess such a licence.
