The Ksa Clamps Down on Arcades offering Games of Chance

One of the major objectives of reputable gambling regulators, like the Netherlands’ Kansspelautoriteit (Ksa), is to shield youth from the enticement of gambling before they are mature enough to make rational, well-educated decisions.

One of the challenges that the Dutch regulator faced in that regard did not come from the casino sector but from its popular land-based arcade market.

The Massive Dutch Arcade Footprint

According to a report by business data and analytics provider Dun & Bradstreet, more than 600 businesses fall under the Amusement Parks and Arcades business classification in the Netherlands. The report showed that the upper echelons of these businesses generate more than €20 million in sales per year.

While most consider these locations harmless fun, what concerned the Ksa was the rapid growth in the number of games that feature the same mechanics and triggers found in casino games of chance.

These arcade machines are not considered gambling because there are no cash prizes. Participants are rewarded with chips, vouchers, or receipts, which can be exchanged for prizes.

 Providers Promises Are Being Upheld

The Dutch regulator is not one to limit itself to the letter of the law when it deems the spirit of the law to be in jeopardy. This was upheld when they clamped down on lootboxes in video games, another scenario where games of chance mechanics were employed and defended by the lack of cash prizes. In that instance, the Ksa banned them.

To avoid such harsh governmental action, the Branch Association Family Entertainment Centers Netherlands (FEC Netherlands) promised to transform their arcades into safer spaces. They would achieve this lofty objective by removing games that relied on chance and random outcomes with skilled-based activities.

After a recent visit to several FEC Netherlands locations, Ksa president Rene Jansen gave a positive report saying:

“I have seen with my own eyes that the industry is working on the turnaround. A conscious decision was made to make a real 'business case' of entertaining (among other things) children with games of skill.”

Given that FEC Netherlands owns and operates 90% of the region’s arcade locations, their cooperation in this regard is deemed a massive success for the protection of Dutch youth.