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Dutch Online Gambling Slammed by Two Regressive New Rulings
By Shane Addinall Apr 18, 2024 LegalityIn a surprise turn of events, the Dutch House of Representatives just voted to ban all casino advertising and a key casino game category. Read on to learn about the impact this will have on licensed casinos, the local economy, and black market gambling.Members of the Dutch government have been at odds with pro-gambling Ministers for years over advertising online gambling in the Netherlands. July 2023 was hailed as a victory for anti-gambling parties as a new gambling ad limitation was introduced, which prohibited advertising games of chance or online casinos through untargeted platforms.
Gambling Ads Were Down But Not Out
Its focus on media channels that could not specifically target adults interested in gambling meant that advertising was only prohibited on television, radio, print media, billboards, and other channels where at-risk adults and youth could accidentally be exposed to casino bonus offers and promotional materials.
However, it still allowed for advertising through targeted channels such as social media groups, direct email, and online casino-focused websites. This resulted in online casinos and betting companies shifting their marketing activities from local media houses to international online platforms frequented by Dutch users.
Government Votes Yes on Dual Gambling Blow
According to local news providers, the Dutch House of Representatives voted last Tuesday on a motion that attempted to deliver a double blow to the legal online gambling market.
The speaker for the Dutch Socialist Party explained their support for gambling bans, saying:
Quote“As far as we are concerned, it is the end of the story for gambling companies without morals. A ban on online gambling advertisements is another step forward towards a country without bad gambling companies.”
The motion in question focused on the banning of “online gambling advertising” and any games of chance that could be labelled as “very high-risk online gambling”. While the motion for a total gambling advertising ban failed previously, this time around, it received 77 votes out of a possible 150 in favour of the action.
The motion to ban Online Slots in the Netherlands, which was the real-world intent of the call to prohibit “online gambling with a demonstrably very high risk,” was also adopted by the government.
The aim here is to suppress the market share of games of chance where players compete with the house to win prizes, rather than playing against other players where it becomes a skill versus computational odds conversation.
Will This Herald a Renewed Black Market?
Despite winning the votes needed this time around to enforce these draconic limitations, there are no hard dates for when the amendments will be written into power. This has not stopped industry analysts from voicing their concerns over its impact on licensed online casinos.
The reports used to support these votes highlighted that licensed casinos drew 77% of their revenue from online slots and other games of chance that will fall under the banner of ‘very high risk.’ The reduced income combined with local licensing and annual gross gaming revenue-based taxes will likely smother licensed operators, forcing them to exit the market.
The initial bans have already had a demonstrably negative impact on local media and advertising companies, and these closures will result in the redundancy of Dutch citizens employed by these online casino companies.
On the other hand, as it is not illegal for Dutch citizens to play at offshore gambling sites, there will be an increase in operators accepting players from the region without having to pay for licenses, annual taxes, or contribute towards local safer gambling programs.
The Ksa believes that its partnership with Cloudflare will allow it to block players from accessing these sites. Still, the strategic use of a VPN combined with banking via cryptocurrencies like Bitcoin could easily bypass these restrictions.
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