Dutch Advertising Sector Flourishes Under New Gambling Regulations

We often hear of online gambling regulation being used by local governments as a way to bolster the business development and growth potential of the jurisdiction. The ongoing concern however has been how to protect at-risk players while supporting the advancement of the industry at the same time.

Despite the best of intentions gambling entities such as the UK Gambling Commission have struggled to find their footing in this regard often overreacting to small market fluctuations resulting in decisions that the media have labelled draconian.

 The Netherlands Shines Bright

One of the recent newcomers to the regulated space, the Netherlands, is showing the old industry dogs some new tricks. Building off the best of its predecessors the Dutch remote gambling act is proving to offer a safe space for customers and casino businesses alike.

In addition to the positive growth of the local casino industry the Dutch media and advertising sector has also shown amazing growth under the new gambling legislation.

 According to an industry overview by Nielsen gambling-related advertising has more than doubled in the last year. The reports showed that advertising for legal online casino sites grew from 170,000 in October/November 2020 to an incredible 367,000 in October/November 2021.

Naturally, this increased demand for airtime means a massive revenue upside for local channels. The 5 of the 11 casinos licensed in the Netherlands spent more than €20 million on ads in only 60 days:

1. Holland Casino spent €6.4 million
2. Toto Casino spent €4.6 million
3. FairPlayCasino spent €3.3 million
4. BataviaCasino spent €3.2 million
5. Tombola Casino spent €2.6 million

These adverts not only helped support the online and social media advertising companies in Holland but nearly 15% of the ad spend made its way to mainstream ads such as television and radio.

Not Blinded By Money

As one would expect from a gambling regulator with the best interest of the players in mind the Dutch gambling authority is still mindful of the impact that such a sharp increase in exposure could mean for problem players.

Health psychologist Arie Dijkstra noted:

"As an individual, I get to see a gambling commercial, but I also know that others see the same advertisements. Combined with legalization, it leads to a change in social norms.”

This has led individuals within the local government to call for additional controls on internet-based advertising as they do not follow the same strict guidelines as television ads. One of the recommendations was the introduction of a time limit that would see online ads being restricted to only showing after 9pm (as with TV ads).

Minister of Legal Protection Sander Dekker agreed that is worth monitoring the impact of the increased ad exposure but reiterated the importance of allowing the remote gambling act to test its mettle under these new conditions.