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Dutch Online Gambling Market Could Soon Include Licensed Lottery
By Shane Addinall Mar 11, 2024 LegalityThe Netherlands East Brabant District Court overruled the Ksa's decision to deny JVH Gaming a lottery license to maintain the Nederlandse Loterij monopoly. We delve into the short to long-term impact of this groundbreaking ruling.The Dutch online gambling market is considered one of the most robust and exemplary in the industry. The gambling regulator de Kansspelautoriteit (KSA) boasts a reputation for being tough and fair.
The latest Statista data on gambling in the Netherlands predicts an annual growth of nearly 6%, which could see its 2024 gaming revenues peak at around €1.08 billion! Should the market continue on this track, it could be worth approximately €1.4 billion by 2028.
The Netherlands Shines as a Gambling Jurisdiction
One of the keys to the success of the Ksa since the inception of the current Dutch online casino market has been the efficacy and fine-tuning of its Remote Gambling Act (Koa).
The Act, introduced in 2021, expertly outlines licensees' responsibilities to players and the country while ensuring that the gambling regulator has the authority to enforce the law.
This balance of consumer protection, market growth focus, and no-nonsense approach to black market operators has allowed the online gambling market to blossom as a commercially viable yet safe environment for all parties.
The One Place the Dutch Gambling Act Falls Short
Regardless of how well-structured the Koa is as a standalone piece of legislation, a recent legal case laid bare a glaring problem when it is reviewed as part of the European Union’s Federal Trade Laws.
According to a local newspaper, in 2022, the JVH Gaming group applied for licenses to offer instant lottery and online lottery products to Dutch customers. Their application was denied because the Koa only allowed for a single license, which was subsequently granted to Nederlandse Loterij (NLO).
In a surprising turn of events, the Netherlands' East Brabant District Court ruled against the Ksa’s defence of the practice, stating that as the Koa effectively creates and protects a monopoly, is it in line with Article 56 of the Treaty on the Functioning of the European Union (TFEU).
The court specifically noted that Article 56 bans any action that limits the offering of services within EU member states to a monopolising body. It also raised concerns over the logic of restricting the lottery to a single operator while opening the country to international licensees for games of chance, which are statistically the higher-risk product.
What Does The Future Hold for the Dutch Lottery?
In accordance with its ruling, the court has ordered the Ksa to reevaluate the JVH Gaming application and make the necessary changes, noting that it realises "this ruling has major consequences for the licensing for organising the three country-based games of chance."
The reference to three gambling segments is because the scope of the Dutch Lottery's monopoly was not limited to the lotto but also included Krasloten and Toto.
One of the most likely short-to-medium-term outcomes of this ruling is that NLO loses its monopoly in the Netherlands and that JVH Gaming will be allowed to roll out online lotto and sports betting in the country via its Jack Casino brand.
What the long-term implications will be is currently up in the air. However, should the Dutch courts stick to their guns and demand that lotto and betting be opened to multiple licensees like online casino games have been, it could revolutionise those sectors and drive the local gaming revenue predictions for 2024 and beyond to unprecedented heights.
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