Netherlands concerned sports advert ban could be bypassed

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Dutch Lawmakers Raise Concerns Over Potential Evasion of Upcoming Online Gambling Advertisement Ban

Recent developments in the Netherlands highlight the growing unease among lawmakers regarding the forthcoming prohibition on online gambling advertisements in sports. During a parliamentary session on March 12, State Secretary for Legal Protection, Teun Struycken, asserted the necessity for enhanced player protection yet acknowledged that a complete prohibition on all gambling advertisements is not currently favored. He cautioned that the potential for circumvention observed in Belgium could also manifest in the Netherlands.

As of January 1, 2023, Belgian regulations prohibit sports clubs from featuring gambling sponsors on their uniforms. However, concerns have emerged that gambling operators are circumventing this ban. For example, Club Brugge’s jerseys, once prominently displaying the Unibet logo, now feature “U-experts,” an application affiliated with Unibet linking to its casino services. Similarly, Cercle Brugge transitioned from “Golden Palace Casino” to “Golden Palace News” as its sponsor.

Looking ahead, a comprehensive ban on sports sponsorship by licensed online gambling operators is set to take effect on July 1, 2023, in the Netherlands. The Kansspelautoriteit (KSA), the Dutch gambling authority, has emphasized that operators will be held accountable for compliance, even if advertisements are disseminated by third-party marketers.

Amid these developments, lawmakers have voiced apprehension regarding potential circumvention of the ban by online gambling companies, similar to the situation in Belgium. Struycken addressed this issue directly, stating, “I cannot rule out that there are parties in the Netherlands that will attempt to display sponsor names or logos related to their gambling company in a manner akin to Belgium. Should this occur, the gaming authority will leverage all legal avenues to prevent or halt it.”

In response, Struycken has proposed implementing further restrictions on online gambling advertisements and amending the Gambling Act to encompass the wider advertising ecosystem, including marketing firms and online platforms.

Total Advertising Ban Not Supported

During discussions, the Dutch regulator conveyed through Struycken that a total advertising ban is not favored, as players still require access to information about legal gambling options. The KSA is advocating for a transition in advertising regulations, proposing a shift from a permissive framework—where all advertisements are allowed provided they meet specific conditions—to one where all gambling advertisements are prohibited except where explicitly permitted.

Struycken commented, “The KSA has expressed the wish that advertising rules be universally applicable rather than limited to permit holders. This approach would enable the KSA to take direct action against advertisers themselves, such as news outlets or sports clubs.”

Addressing the issue of underage exposure to gambling promotions, Struycken acknowledged that it would be impractical to entirely eliminate this risk while sports sponsorships for gambling companies exist in other countries.

Review of the Gambling Act

Last year, the Netherlands conducted a thorough review of its gambling policies. The findings, published in November, concluded that existing measures to safeguard players and promote responsible gambling were inadequate. The report asserted that the Remote Gambling Act has not established a secure or sustainable market aligned with the original legislative aims.

The regulated Dutch online gambling market was launched in October 2021, following the enactment of the Gambling Act. Struycken’s proposed new gambling bill includes a recommendation to raise the age limit for slot machine players from 18 to 21.

In October, the KSA mandated online deposit limits for operators, noting, however, that these measures could be strengthened to incorporate financial capacity assessments for gamblers requesting increases in monthly deposit limits. Presently, deposit caps are set at €300 (£255/$325) for players aged 18 to 24 and €700 for those aged 25 and older.

Struycken stated, “For me, the primary consideration is the protection of all citizens from gambling-related harm.” He emphasized that this protection must extend beyond addiction prevention to include addressing other detrimental effects of gambling participation, such as financial distress.

The KSA has already indicated that there is a tangible risk that players exceeding these limits may resort to illegal gambling providers.

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