Strict new laws on the Dutch online gambling market deterred gambling operators
In the third quarter of 2019, the Dutch gambling regulator Kannspelautoriteit (KSA) stated that it had received online gambling license applications from 183 different operators from the world (including 89 international companies). However, a survey commissioned by the Dutch government revealed that in the future, only 68 operators may apply for licenses. Among them, 41 are international operators. According to the analysis from industry, it should be the country’s strict regulatory measures plan, which has deterred many potential applicants.
In addition, the survey report also estimated that about 25% of applicants could not pass the review. Operators who meet the review requirements will be able to obtain a 5-year license. Obtaining a legal online gambling license will allow operators to provide online casino games, poker, and sports betting to players in the country’s market. But the online lottery is an exception, because this activity is still within the jurisdiction of the Dutch government. According to regulations, initially operators need to pay 800,000 euro of license fee, and also need to pay 800,000 euros of license renewal fee per year. The Dutch government will impose a 29% of online gambling income tax on licensed operators.
At the beginning of March 2020, the Dutch government issued a draft general administrative order. The country’s legislators will study the bill and suggest potential changes before it becomes law. According to media reports, there are many disputes in this draft. As part of the draft, operators who illegally operated in the Dutch market in the past few years will be required to leave the country’s market for 30 months before obtaining a legal license in the country. In addition, if a licensed operator already has an office in the European Union or the European Economic Area, then they no need to establish an office in the Netherlands. However, a control database must be placed in the country, and a representative must be present in the country to effectively formulate and implement the gambling addiction prevention policy.
This is not the only controversial point. The Dutch government also plans to exercise major control over gambling advertising. As a result, all forms of gambling advertisements will be banned from 6am to 9pm. And these advertisements cannot contain any influential people or idols that appeal to young people. Sander Dekker, the country’s Minister of Justice and Security rejected the lawmakers’ request for a comprehensive ban on gambling advertising. He responded that if the government wants players to stay away from internationally licensed online casinos, then it should let consumers be aware of the country’s legal gambling platform.
