KSA working to ‘undermine’ illegal operator revenue model

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Michael Groothuizen, the chairperson of the Kansspelautoriteit (KSA), has underscored the regulator’s proactive measures to combat illegal gambling operators and their supporting infrastructures in collaboration with licensed market participants.

In a recent blog post dated April 10, Groothuizen shared details about an initiative aimed at dismantling illegal gambling infrastructures, aptly termed *“Undermining Illegal Infrastructure.”* This project is essential for preserving the integrity of the gaming landscape in the Netherlands.

Groothuizen highlighted the KSA’s strategy to minimize the presence of illegal operators in popular gaming markets. Key objectives include reducing the advertising footprint of unauthorized platforms on social media and complicating their revenue collection methods.

To facilitate these objectives, Groothuizen emphasized the necessity for a united front that encompasses banks, payment processors, and licensed gambling operators. He asserted the importance of collaborative efforts among various stakeholders to disrupt and diminish the financial framework supporting illegal gambling ventures.

Furthermore, Groothuizen commended the contributions and strategic insights from licensed providers and their affiliates, which have been invaluable in addressing the illegal gambling challenge.

Regulatory Reforms and Combating Illegal Applications

In a significant development, the KSA reported earlier this week the successful removal of 20 gambling-related apps from various app stores in just the current year.

Groothuizen noted the regulator’s achievements in eliminating these apps but expressed concerns regarding the considerable difficulties in tracing the operators responsible for them. “We require the cooperation of major technology companies; app store operators do not always align with our objectives, and this issue has escalated in recent years,” Groothuizen remarked.

In March, industry stakeholders delivered strategic recommendations to the Dutch government concerning proposed reforms for the national gambling legislation. The KSA has raised alarms about the growing accessibility of illegal applications, which pose risks to vulnerable populations.

Anticipated updates to the gambling act are expected to be deliberated by Dutch legislators by the end of this year. Proposed measures include raising the legal gambling age in the Netherlands to 21 years and implementing stricter advertising restrictions for higher-risk gambling products.

Groothuizen expressed satisfaction with the ongoing discussions regarding the introduction of new legal instruments for the KSA. However, he cautioned that any new legislation will take time to enact, necessitating patience as the KSA must operate with its current, albeit limited, regulatory powers for “at least” the next two years.

“In the interim, we are committed to maximizing our impact with the tools currently at our disposal,” Groothuizen concluded.

This proactive stance by the KSA reflects a critical commitment to safeguarding the gambling ecosystem in the Netherlands, ensuring a fair and secure environment for all stakeholders involved.

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