KSA Orders LuckyGem to Stop Unlicensed Gambling or Face €974,000 Penalty

The Netherlands Gambling Authority has ordered Virtual Connect S.R.L., the Costa Rica-based company identified as the operator of LuckyGem, to stop offering online gambling to Dutch players without a licence.

The Kansspelautoriteit (KSA) imposed a penalty order requiring the company to cease the unlicensed activity. If it continues after the compliance period, Virtual Connect can incur €487,000 per week, up to a maximum of €974,000.

The measure is not an immediately payable €974,000 fine. The financial penalty becomes due only if the operator fails to comply with the KSA's order.

KSA Found No Block on Dutch Players

The regulator investigated LuckyGem in February 2026 and found that a user connecting from the Netherlands could create an account, deposit money and gamble.

According to details from the enforcement decision, the Netherlands and euro were preselected during registration. A KSA investigator deposited €20 through an ING bank account and was able to play a slot on the platform.

The regulator also found no technical restriction preventing access from a Dutch IP address. Follow-up checks took place on February 23, March 13 and June 29, with the account still available during the final inspection.

Online gambling can only be offered legally in the Netherlands with a licence issued under the country's Remote Gambling Act. The KSA maintains an official register of authorised operators.

KSA Sets Maximum Penalty at €974,000

The regulator based the size of the penalty on an estimate of LuckyGem's Dutch gambling activity and the costs faced by licensed operators.

The KSA identified approximately 2,600 Dutch Google searches for LuckyGem in January 2026 and used that figure to estimate monthly GGR from the Netherlands at €348,000.

For a two-week period, the regulator calculated estimated GGR of €174,000. It then added approximately €800,000 representing costs associated with operating under a Dutch licence, bringing the maximum penalty to €974,000.

At €487,000 per week, the full maximum can be reached after two weeks of continued non-compliance.

The GGR figure is an estimate used for determining the enforcement amount rather than audited revenue reported by LuckyGem. Search volume also does not represent a verified number of individual customers.

Virtual Connect Can Challenge the Decision

The KSA's underlying enforcement decision is dated July 7, 2026. The regulator's sanctions register lists the Virtual Connect action as published on September 15.

Virtual Connect can object to the decision. The KSA's public record does not currently state that the €974,000 maximum has been incurred or collected.

The enforcement action applies to unlicensed gambling offered by Virtual Connect to Dutch consumers rather than only to a single LuckyGem webpage, according to the published decision details.