Tombola is to impose mandatory compliance checks on Dutch affiliates before operations can commence although currently, the company does not have any affiliates within the Dutch market.
Full Compliance Checks at the Affiliates Cost
The online bingo operator will require all new affiliates in the Netherlands to undergo full compliance checks by XY Legal Solutions BV at a costly sum of €1125 per website for a year then €725 per website yearly thereafter.Tombola’s Netherland spokesperson Mark Smit said, “We do indeed set the seal of approval as a condition for starting an affiliate program at Tombola. We believe that an affiliate partner should be tested.” The new compliance checks by XY, once checked and approved will cover the first year and further payments yearly thereafter.The Dutch Gaming Authority KSA does not accredit the certification, although the KSA carries out its own compliance procedures under the licensing terms of the KOA Act, which is the seal of approval within the Netherlands gambling market.
Huge Expenditure
A Dutch iGaming specialist is skeptical of the third-party compliance checks which would cause huge expenditure for affiliates with costs skyrocketing and could become an ‘unworkable situation’ if Tombola’s new policy is adopted by others.“Imagine all the extra costs involved if every operator would require a compliance check from a different consultancy firm. This would mean gigantic bills for affiliate companies, and the only winners would be money-grabbing consultants who want to make a quick buck.”Tombola is not the first client on XY Legal’s books, Star Casino and Meneer Casino are two operators already included. The controversial decision Tombola has made could prove costly to the company in the Dutch market where it currently maintains no affiliates. The high cost of extortionate compliance fees could prove an unattractive choice for many.