The Dutch Gaming Authority (KSA) has imposed a penalty payment on BlockDance BV for offering unlicensed games of chance. Offering games of chance without the required license is prohibited in the Netherlands. If the party does not cease the violation and keep it ceased, it will be imposed a penalty payment.

Investigation by the KSA has shown that BlockDance offers illegal games of chance on the websites bc.game and bcgame.lu. After a re-inspection by the KSA, BlockDance made the investigated website inaccessible to Dutch players. At that time, the KSA announced to the party that it would not impose an order subject to penalty payments. However, during monitoring, the sites appeared to be available again, which is why an order is now being imposed after all. Within four weeks of sending the order, the company must definitively stop offering games in the Netherlands, otherwise they will receive a penalty payment of €280,000 per week, with a maximum of €840,000.

On the sites investigated it was possible to create a player account, make deposits and participate in the illegal gambling offered. No technical measures were taken on the sites to prevent participation from the Netherlands.

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The Netherlands has a regulated gambling market to better protect players. The KSA therefore takes tough action against illegal supply. With an order subject to penalty, illegal supply is often quickly stopped. Providers can also be fined for the period in which the illegal supply was available.

The Ukrainian Gambling Council (UGC) has appealed to Google to stop blocking all advertising of Ukrainian licensed gambling organisers, as it does not comply with the current legislation, leads to losses for both business and the state budget of Ukraine, and helps illegal operators to enrich themselves.

Combating illegal online gambling advertising is an important component of counteracting the development of the shadow gambling market. However, over the past year, an unbalanced policy in this regard has led to extremely negative consequences – search engines have begun to block all advertising related to the activities of primarily licensed Ukrainian gambling market organisers that have established and unchanged domain addresses in the Ukrainian Internet segment. However, illegal operators, who can easily change the names of their websites and move from one domain to another (in different jurisdictions), have hardly felt the effects of the bans.

In fact, Google considers Ukraine as a country where all types of gambling, except lotteries, are currently prohibited, and it blocks advertising mainly from legal companies. This situation leads to negative consequences and the expansion of the illegal services market. Licensed companies have obtained state licences and launched marketing campaigns, including sponsorship of sports competitions, but they cannot legally advertise their services online. As a result, companies lose customers and profits, and the state loses taxes.

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It is worth noting that lotteries are among the services allowed on Google in Ukraine. However, all lottery operators, without exception, operate in Ukraine on the basis of licences that expired back in 2014. In fact, lotteries imitate gambling – betting, online casinos, slot machines – without having the appropriate licences. They also do not pay any taxes and licence fees to the budget. However, lottery operators are not subject to any restrictions on gambling advertising.

In order to remedy the situation and streamline the system of prohibitions in order to prevent further losses of business and state funds, the Ukrainian Gambling Council (UGC), a non-governmental organisation that unites licensed gambling organisers, has once again appealed to the management of the regional office of Google in Ukraine, namely, Paul Terence Manicle, Director of Google LLC, and Tetiana Lukyniuk, General Director of Google Office in Ukraine, with a request to lift the existing restrictions and provide an opportunity to officially advertise gambling, in particular, on the territory of Ukraine using Google services:

• activities related to the organisation and conduct of gambling in gambling establishments;

• organising and conducting casino gambling on the Internet;

• organising and conducting betting activities in betting shops and on the Internet;

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• organising and conducting gambling in slot machine halls;

• organising and conducting poker games on the Internet.

Also, to remove the existing restrictions and allow official advertising of mobile applications on the territory of Ukraine using Google services and provide all opportunities for the official placement of mobile applications for organising and conducting online gambling on Google services.