Politics

Before Holland Grants Permits:

Starting from January 1st, 2021, private online gambling companies in the Netherlands can seek a license for their operations.

SymClub
May 23, 2024
2 min read
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Compared to other European countries, Dutch law has the strictest requirements for online gambling...
Compared to other European countries, Dutch law has the strictest requirements for online gambling providers.

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Before Holland Grants Permits:

As of January 1st, 2021, private online gambling companies will be allowed to apply for gambling licenses in the Netherlands. This decision marks the beginning of market liberalization in one of Europe's close neighbors. The Dutch gambling authority, Kansspelautoriteit (KSA), has stated that licensed firms in the sector will be subject to strict legal regulations that are not found in other European countries. Furthermore, illegal gambling activities will be punished more severely than before.

René Jansen, the chairman of the Dutch Gaming Authority Kansspelautoriteit, addressed the gaming industry at the "Gaming in Holland" event last December. When asked about the contentious issue of whether the Netherlands should allow private (online) gambling providers, Jansen confirmed that they would indeed be permitted to operate on the Dutch market, much to the delight of the industry. However, applicants will not be able to submit their license applications this year, as initially planned, but rather from January 1st, 2021.

Jansen also revealed that the creation of the necessary legislation is taking longer than expected, which is one of the reasons for the delay in the commencement of the license application process. He did not provide any specific details about the progress of the legal bill, but emphasized that gambling companies will need to comply with stringent regulations and that these will be closely monitored by the government.

"To qualify for a license, you will need to demonstrate that you meet all of these requirements. And let me assure you, we will absolutely determine if your measures exist just on paper."

The topic of addiction prevention has proven to be particularly challenging in formulating the legal text. Political parties in the Netherlands are demanding more stringent and detailed regulations than those found in most other European nations. The law will require gambling companies to:

  • Present evidence of measures taken to protect players and prevent addiction
  • Present evidence of employee training programs dedicated to player protection and addiction prevention
  • Develop specific measures to protect the 18-25 age group from pathological gambling behavior
  • Implement advanced systems for confirming the age and identity of new players

Apart from addressing addiction prevention, Dutch politicians intend to examine gambling advertising more closely. They plan to employ European models such as Italy, which involve banning ads in specific public places and at certain sporting events.

In the wake of the positive news about the development of the Dutch gambling market, stringent new rules have also been introduced for illegal gambling providers. Previously, these companies faced a minimum fine of 150,000 euros for operating illegally in the Netherlands. This amount has now been increased to 200,000 euros, with no upper limit. If the Dutch authorities are ignored, the fines can also increase to 50 percent of the offending sum. The stringent regulations are likely to be necessitated by the significant sums that illegal providers accumulate annually from their activities. However, this could soon come to an end.

"According to the Statistics Institute (Centraal Bureau voor de Statistiek), the Netherlands' gambling sector generated funds of 2.05 billion euros in 2018. The turnover of the sector has increased by 11% since 2015. What is interesting is that unlicensed gambling providers reportedly account for the greatest share of the sector's revenue, which amounted to approximately 600 million euros in the same period - a 20% increase."

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Source: www.onlinecasinosdeutschland.com

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