The Netherlands’ gaming watchdog has beaten back an online gambling operator’s appeal of a €180k fine for serving Dutch punters without a local license.

In late 2014, the Kansspelautoriteit (KSA) gaming regulatory body imposed €180k in penalties on Bluemay Enterprises NV and Bluemay Enterprises Ltd, the companies behind the 7red.com and Royaalcasino.com online casinos. The KSA accused the sites of offering Dutch-language options and promoting their products on Dutch TV and via social media.

On Wednesday, the KSA published the text of a February 22 ruling by the Council of State rejecting Bluemay’s appeal of the fine. Bluemay had offered a number of legal arguments to support its appeal, including that Article 56 of the Treaty of the Functioning of the European Union (TFEU) prohibits bans on the free movement of services between EU member states.

Trouble is, as the Council pointed out, Bluemay’s sites are licensed in Curacao, which is a constituent country of the Kingdom of the Netherlands (the actual Netherlands is also a constituent country of the Kingdom), but Curacao has never been considered an EU member state, making the Article 56 argument something of a non-starter.