The Netherlands' highest administrative court has ruled that the country's gambling regulator Kansspelautoriteit (KSA) cannot penalise payment companies processing transactions for unlicensed gambling sites.

The Council of State said that under the current gambling legislation, a payment processor could not be seen as facilitating illegal gambling.

The KSA described the decision as a major setback in its efforts to tackle online gambling, which remains illegal until the new Gaming Act is passed.

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