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Level-headed Dutch Gambling Regulator Deals with Industry Breaches
By Shane Addinall Jul 14, 2022 LegalityIn the world of regulation, they often view softer approaches as a weakness. The Dutch regulator shows other gambling industry leaders how it may be the answer to success.Regarding leadership styles, we could categorise the Dutch gambling regulator as transformational instead of authoritarian inspectorates. The Kansspelautoriteit (KSA) and the government of the Netherlands committed to a safe and responsible gambling industry for the European nation and took the road less travelled.
This does not mean that the KSA has no teeth, nor does it mean that the regulator is incapable or unwilling to take the necessary steps to reach its goals. One approach adopted by the Dutch gambling industry was to allow illegal operators into the licensed arena once they completed a cooling-off period. The regulator also empowered operators to manage player expenses and losses without imposing caps on these.
Recent events prove the Dutch inspectorate is not timid and will take legal action where it is necessary, but the KSA also approaches problems from the offence.
When Best-Laid Plans Fail
The Dutch regulator cemented its reputation as the reasonable European regulator by creating gambling legislation that allows certain freedoms. These extend to operators and players in the country. KSA chair, Rene Jansen, affirms that the unconventional approach comes with a downside as some licensees seek loopholes, but so far, the results are promising.
While the inspectorate continues to issue public reminders to its licence holders, it also takes definitive action on shortfalls. One of Europe’s largest gambling providers recently had its best-laid plans faltering within 24 hours of their launch in the Dutch Market. Kindred Group subsidiary Unibet launched in the Netherlands on 11 July, following a voluntary cooling-off period from October 2021.
After many customer complaints on the first day of its launch, Unibet and the KSA had to investigate the operator’s bonus system. Reports cite many players could not claim their sign-up bonuses. Instead of slandering their newest market entry, the KSA opted to communicate respectfully that the operator is aware of the issue and busy fixing it.
The regulator launched an investigation to pinpoint the issue and support the right course of action to ensure players get the remote gambling experience they deserve.
Finger on the Pulse
Technically, the Dutch regulated gambling market is in its infancy, but the Netherlands may well be one of the best-regulated regions in the world. This is the government’s goal, and by keeping its finger on the pulse, the KSA gradually works toward being the top regulated market.
This includes investigating government systems, such as the Dutch self-exclusion program. Known as Cruks, the nationwide self-exclusion program includes online and land-based operators to help players control compulsive gambling behaviour. When players reported they could access physical gambling facilities, although they registered on Cruks, the KSA left no stone unturned.
The investigation uncovered that the issue was with the government system, not the operators. By uncovering the problem swiftly, the regulator minimised harm and took responsibility for repairing the issue.
Unconventional, Yet Far from Feeble
Authoritarian and Draconian leaders have concerns about more lenient leadership styles and sometimes see these approaches as weak. With the success in the Dutch gambling industry, we can conclude that there is logic to the transformational approach.
This does not mean that the KSA is unwilling to act when operators cross the line. Some of its best work includes throwing illegal operators out of the country. A recent cease and desist order on the online operator Gammix Ltd is an example of this. In fact, the Dutch regulator has promised that the country will soon have no illegal gambling. Their trump card is a safe and enjoyable regulated market.
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