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The Maturation of the Dutch Online Gambling Market
By Shane Addinall May 28, 2023 OpinionWith its market recency, changes to its in-country marketing laws, and overall success, we thought it was a good time to delve into the Ksa successes and some of its shortcomings.While the Netherlands took longer than many of its European peers to formalise its multi-license online gambling program, having written its updated gambling act into force on July 1st, 2022, what it has achieved in a relatively short space of time is laudable.
Join us as we do a deep dive into the successes, challenges, and shortcomings of the regulated Dutch gambling space.
Safer Gambling for All Parties Involved
The Netherlands has a reputation for being an easy-going region. However, rather than being a soft target for unlicensed casinos and betting sites, it has proven to be able to strike a balance between regulation and industry growth.
Speaking on their regulator’s intent to create a safe and financially viable market for both players and the companies that run online gambling sites, René Jansen, Chair of the Kansspelautoriteit (KSA), said:
Quote“We want people in the Netherlands to be assured of a safe range of games when gambling online and to be protected against excessive participation and gambling addiction. In addition, we want it to continue to pay off for licensed providers to incur costs for applying for and maintaining their license.”
The chairman clarified that they would not be placing the financial viability and value that the gambling-related revenues add to the local economy above the safety of Dutch players.
Jansen added:
Quote“Naturally, we remain keen to ensure that licensees actually live up to this 'playing it safe' approach in practice. You have to earn a license from the Gaming Authority and live up to it every day.”
This determination to find a balance has the market fast becoming a leader in the European licensed gambling sector. Many more established regulatory jurisdictions updating their gambling acts are taking the lead from the Dutch.
Taking Control of the Local Airwaves
One of the ways in which Jansen and his team address the issue of safer gambling is by limiting the abundance of casino advertising that flooded the market through television, radio, print media and untargeted sponsorship opportunities.
Thanks to the efforts of Minister Franc Weerwind, 1 July 2023 was the beginning of a nationwide ban on all untargeted advertising for games of chance, casino and betting bonuses, and other gambling services.
The reason for these limitations is that most above-the-line advertising is not targeted. Online advertising can be focused on sites with provably adult users but television programming, radio advertising, and billboards cannot ensure those consuming their content are above the legal gambling age.
Illegal Gambling Won’t be Tolerated
In addition to sorting out their house, the Ksa is also ensuring that no outsiders are to exert undue influence over the decisions of Dutch players.
Jansen clarified their position, saying:
Quote“That starting point is extremely important for a safe market. We monitor that. In addition, we contribute to this by tackling illegal threats from outside, which continuously prey on players in the legal market. Crime should not pay; a safe and responsible legal offer is!”
This position is supported by the Netherlands Online Gambling Association (NOGA) director Peter-Paul de Goeij who said:
Quote“It is up to us, together with the government, to make the licensed offer even safer in the coming years and thus protect online gamblers even better – while the licensed offer remains attractive enough to keep them away from illegal activities.”
Once again, the sector shows its maturity by not putting all the blame on the illegal operators. Instead, there is a realisation that the onus of ensuring that players can easily find licensed operators lies with the Ksa and its official bodies.
The NOGA director confirmed this by saying:
Quote“Whether or not you have gambled before, it must be as easy and clear as possible to identify licensed safe providers, especially if that recognition deteriorates again due to the upcoming advertising ban.”
This proactive approach to the market has allowed the Dutch gambling sector to reach and maintain a 94% channelisation percentage.
Gambling Regulation is Not Always a Perfect Science
Despite their hard work and well-structured regulatory frameworks, there is always room for improvement. One of the most glaring examples is the ongoing case between the Ksa and gambling operator Videoslots Casino.
The operator was fined an incredible €9.87 million for targeting Dutch players without the appropriate casino license. However, Ulle Skottling, the Deputy CEO at Videoslots, hit back at the regulator, saying:
Quote“Videoslots does not target but restrict the Netherlands, so the Dutch Gaming Act does not apply to its services. No Dutch players were able to access our site during the disputed period, and there was no violation as a result.”
He went on to make some grave accusations of abuse of power:
Quote“It is absurd that the KSA should fine us after gaining unauthorised access. It is simply not possible to protect fully against unauthorised access, and the KSA has no guidelines on what measures are sufficient.”
The case is ongoing as the regulator claims that despite being able to block players using their IP address and other metrics, all that was needed to bypass their registration blockade was to change the country of origin on the signup form to Germany.
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