Netherlands minister moves to curb problem gambling

Revised Gambling Regulations in the Netherlands: A Comprehensive Overview

As the Netherlands prepares for significant revisions to its gambling legislation, state secretary for legal protection Teun Struycken has put forth a proposal to raise the minimum age for online slot players to 21 years. A new gambling bill is anticipated by the end of 2025, marking a pivotal moment in the country’s approach to gambling regulation.

During a parliamentary session in December, Struycken communicated his ongoing efforts to refine the gambling policy framework, with intentions to present these updates to policymakers in March. This initiative stems from an extensive review the government initiated last year, culminating in a report released in November. The findings indicated that existing measures aimed at fostering responsible gambling and safeguarding players from potential harm have not met their objectives. Consequently, it was concluded that the Remote Gambling Act has failed to establish a sustainable and safe market, which was the foundational goal of the legislation.

Timeline for Regulatory Updates

In his latest update to parliament, dated February 14, Struycken emphasized that the finalized bill to update gambling regulations is expected by late 2025. The primary focus of the new legislation will be to protect all citizens from gambling-related risks, addressing not only those who currently engage in gambling but also those who may never gamble.

The discussion surrounding the possibility of implementing new measures ahead of schedule persists. Proposed enhancements include increasing operators’ responsibilities regarding player welfare and adjusting current restrictions on gambling advertisements.

Advertising Limitations and Current Restrictions

Currently, the marketing capabilities of gambling operators are severely limited. Advertising for gambling is prohibited on television, radio, and in both indoor and outdoor public spaces. Online promotional activities are restricted, with brands permitted to market only to consumers aged 24 and older. Additionally, influencer or celebrity endorsements are banned, effectively curtailing a vital promotional avenue for operators.

Proposed Changes to Age Limits and Deposit Controls

Struycken has proposed raising the minimum age for participation in “risky games of chance,” such as online slots, to 21. This adjustment aims to mitigate exposure to gambling among younger demographics. In tandem, new deposit limits will be introduced to create a more controlled gambling environment. The Dutch Gambling Authority (KSA) implemented industry-wide mandatory online deposit limits in October, which could be revised to include financial capacity assessments for players wishing to increase their deposit limits.

The KSA will also gain enhanced enforcement authority, allowing for stricter oversight and the ability to block illegal gambling sites, thereby combating the black market for online gaming.

Struycken has indicated his intent to collaborate with European policymakers to address the proliferation of illegal gambling, emphasizing the need for effective international enforcement measures.

“My paramount objective is to protect all citizens from gambling-related harms,” Struycken stated. “This includes not only preventing addiction but also addressing other detrimental effects, such as financial distress.” He underscored the necessity of safeguarding vulnerable groups, particularly minors and young adults, who may be exposed to gambling temptations.

Impact of Deposit Limits on Operator Revenues

The KSA has initiated several measures to combat gambling-related harms in the Netherlands. Current deposit limits are set at €300 (£255/$325) for players aged 18 to 24 and €700 for those over 24. The Ministry of Justice and Security has mandated that players must contact betting companies to set a monthly deposit limit exceeding €350, or €150 for young adults.

An evaluation conducted four months after these measures were enforced indicated a significant decrease in players exceeding the established limits—from 9.7% overall to 3.8%, and from 12% to 2.8% among young adults. Furthermore, average losses per player account declined from €117 to €83, leading to a 10% drop in gross gaming revenue (GGR) for legal operators. However, there are concerns that some players may have shifted their spending to illegal operators to circumvent these limitations.

Despite these challenges, the KSA reported that the channelization rate towards legal operators remains high at 91%, although the monetary channelization rate is notably lower than initial projections, estimated at around 50%. Analysis via search data reveals that while illegal gambling remains a concern, the proportion of expenditures lost to black market operators is significant.

Redefining Player Protection in the Netherlands

In January, the Scientific Research and Data Centre (WODC) critiqued the existing gambling regulations, asserting that they unfairly placed the onus on players to regulate their own gambling behavior, describing the current measures as “inadequate.” Struycken’s review has since highlighted a commitment to addressing the vulnerabilities of minors and young adults, populations identified as particularly at risk for developing unhealthy gambling behaviors and addiction.

The WODC report revealed that, while only 1% of all gamblers were classified as high-risk, this figure soared to 18% among young adults with personal gambling accounts. These findings have prompted a stronger focus on protecting this demographic as reforms progress.

The forthcoming changes in the Netherlands’ gambling legislation reflect a proactive approach to player protection, aligning with international best practices and responding to the evolving landscape of online gaming. As the government continues to refine its policies, stakeholders in the gambling industry must stay informed and adapt strategies to ensure compliance and promote responsible gambling.