Malta Provider Denied License in the Netherlands Due to Connection with Journalist’s Murder

In 2023, a request from a Maltese online provider for a license in the Netherlands was rejected. The reason for the denial was the company’s connection to a suspect in the murder of a journalist who was investigating corruption in the gambling industry. A court ruling confirmed the regulator’s decision was justified.

Reasons for License Denial

The provider, operating in the online gambling sector, applied for a license to operate in the Dutch market. However, during an investigation by the Dutch Gambling Authority (KSA), it was discovered that one of the company’s former shareholders was suspected of being involved in the murder of a journalist. The journalist was investigating major corruption schemes related to the gambling industry in Malta.

The provider claimed that it had severed all ties with the individual in 2019 but did not provide the necessary evidence or information about the former shareholder. In response to the license denial, the company filed an appeal, but the legal proceedings revealed that the connection to the suspect had not been completely severed.

Court Decision

The Hague court, which reviewed the case, upheld the actions of the KSA. The court noted that the company had not provided accurate and complete information about its former shareholder, which cast doubt on its reliability and integrity. As a result, the regulator’s decision was upheld, and the application for a license was rejected.

Provider Reliability Assessment

This case became an important precedent for the Netherlands, as it was the first legal case related to a license denial due to insufficient transparency and suspicions about shareholders. A crucial part of the KSA’s work is conducting an “integrity test” for all companies wishing to obtain a license to operate in the country. This includes not only checking legal and financial documents but also analyzing potential links between the company and criminal activity.

Issues with Providing Information

A key issue in this case was that the provider had provided the regulator with incorrect or incomplete information regarding the former shareholder. The court agreed with the KSA’s conclusions that such behavior by the company was sufficient grounds for the license denial. A company that is not transparent in its responses calls into question its honesty and reliability in the eyes of the regulator.

Prospects for the Company

Although the court’s decision upheld the license denial, the company has the right to appeal to a higher court. However, to change the decision, it will need to provide more convincing evidence of its honesty and transparency.

Importance of Checks for the Industry

This case highlights the importance of strict checks and requirements for companies operating in the online gambling sector. Amid growing concerns about criminal activities in the industry, such as money laundering or connections to organized crime, the reliability of providers has become critically important for ensuring fair and safe operations in the market.

Overall, the integrity check is a necessary tool for preventing criminal activities in this sector. The KSA regulator continues to work hard in this direction, and for providers, it is crucial to be as open and transparent as possible to avoid denials and sanctions.