Dutch Gaming Authority Warns of Risky Games of Chance

Earlier this month, the Dutch Gaming Authority (Ksa) reinforced its position on illegal games of chance by sending out cease and desist notices. The regional authority even went so far as to outline some of the potential fines, with one crypto-operator facing penalties of up to €4.5 million. 

The Ksa went on to clarify that its intent in this instance is not to raise funds but to protect at-risk players and youth from being targeted. This concern is due to the ads for these "riskier" games of chance not being channelled through the country's Central Register of Exclusion of Chances (Cruks).

 Lottery Providers Cross the Line

The most recent post on the Kansspelautoriteit website highlights Ksa’s concerns over lottery providers offering unlicensed games of chance.

According to the Dutch Gaming Act, both lotteries and casino games are seen as games of chance. However, the Act differentiates between "less risky" and "high risk" activities.

According to the Ksa, defining the level of risk for each game type allows the consumer to plan their gambling activities and investment intelligently:

“The distinction between risky and less risky games of chance is there to protect consumers.”

Lotteries are deemed to be less risky games of chance due to several factors, including the low cost of entry, the delayed gratification of the payoff and the lengthy payout period. Considering those same factors, casino games such as video slots are therefore deemed far riskier than lotteries.

It is a contravention of the lottery license to offer access to anything other than a "participation entry" online. This includes advertising a lottery draw, knowing that the site which will be accessed contains additional casino games.

Gambling Content Should Never Be a Surprise

This bait-and-switch lottery advertising has raised the ire of the Ksa. Transparency and education are at the core of the Dutch Gambling Authority's responsible gambling efforts.

Addressing these hidden casino games, they stated:

“People who want to participate in a lottery may not come into contact with more risky games of chance without being invited.”

They believe that by offering unsolicited games of chance to unsuspecting lottery players, they risk contributing to "gambling addiction and related social problems”.