Ads, self-exclusion, tax dominate Dutch parliament session

On March 19, stakeholders from the Dutch gambling industry convened to present their recommendations regarding the upcoming reform of the gambling act to the Dutch parliament. Central to the discussions was the regulator’s proposal for a comprehensive ban on gambling advertisements.

The day’s session included contributions from various key players in the sector, notably the Kansspelautoriteit (KSA), Holland Casino, the addiction care network Verslavingskunde Nederland, as well as several other trade organizations and operators. This forum aimed to provide insights and suggestions to the government, focusing on measures to be incorporated into the forthcoming gambling regulations.

An updated gambling act is anticipated to be introduced to parliament by the close of the year. This follows an extensive review of the existing regulations, which were implemented in 2021 as part of the launch of the online gambling market.

In response to concerns regarding player protection and responsible gambling practices, the government initiated this review last year, publishing its findings in November. The analysis indicated that current measures have been insufficient in safeguarding players against gambling-related harms.

State Secretary for Legal Protection Teun Struycken is leading the initiative for the new legislation. In his recent parliamentary update, he suggested increasing the legal gambling age in the Netherlands to 21 for higher-risk gambling formats, such as online slots.

Advocating for Stricter Regulations on Gambling Advertisements

Advertising regulations emerged as a critical topic during the parliamentary session. The KSA proposed a risk-based model for gambling product advertising, advocating for stricter rules for higher-risk offerings. The regulator highlighted that the current advertising regulations are “fragmented and complicated,” a result of adjustments made after the market launch.

Under the proposed framework, all gambling operators—regardless of legality—would be subject to unified advertising rules. The KSA suggested adopting a prohibitionist approach similar to that of tobacco advertising, wherein all forms of advertising would be banned unless explicitly permitted. Presently, operators endure various restrictions on advertising, including a ban on influencer promotions and strict limitations on online and social media marketing that disallow targeting those under 25.

Additionally, the KSA called for intensified regulations for high-risk categories like online slots, likening them to low, medium, or high-risk verticals. Verslavingskunde Nederland echoed this sentiment, advocating for an outright ban on online gambling advertisements. Their submission emphasized: “While street advertising has decreased, online gambling advertisements remain pervasive, making it easy to reach vulnerable groups such as minors and young adults.”

CRUKS Exclusion Scheme in Need of Reform

The effectiveness of the national self-exclusion register, known as CRUKS, was also under scrutiny. The KSA characterized the scheme as operating “poorly,” noting that only a fraction of at-risk individuals have registered. The regulator proposed extending the mandatory exclusion period for involuntary registrants and simplifying the enrollment process, which could include obtaining player information from national credit and guardianship registries.

Pursuing Action Against Illegal Gambling Markets

The discussions also highlighted the significant issue of the illegal gambling market in the Netherlands. Circus.nl, a licensed operator, reported a concerning trend of players migrating towards unregulated platforms. “Illegal operators aggressively lure players with bonuses and features prohibited for licensed platforms, including high cash rewards, unrestricted limits, and lax identity verification practices,” their submission stated.

They urged the government to adopt more rigorous measures against illegal providers, advocating for tougher regulations barring access to unlicensed websites and empowering the KSA with broader authority to tackle entities that facilitate these illegal operations, including affiliates and payment processors.

Concerns Over Increased Gambling Tax

Moreover, licensed operators voiced their concerns regarding the impending tax hike to 37.8% of gross gaming revenue (GGR), positing that this increase would exacerbate black market activity. Circus.nl recommended a revised flat tax rate of 29% to allow licensed operators a sustainable business model. “For a viable and regulated market to thrive, legal operators must be able to maintain profitability,” their statement read.

The impact of the tax increase was echoed by Holland Casino, which urged the parliament to reconsider its approach. They highlighted that the staggered increase had already adversely affected their operations, noting, “The next tax increment will need to be offset by adjustments in other business areas.” Furthermore, they stressed the new tax rates could hinder their social responsibility efforts, leading to lower payout percentages and potentially contributing to players overspending their allotted budgets.

“Ensuring safe and responsible gambling is paramount,” they concluded. “Without effectively combating illegal providers and implementing realistic regulations for licensed operators, we cannot expect a safe and regulated market to flourish.”