The full-day session saw presentations made by the regulator Kansspelautoriteit (KSA), monopoly operator Holland Casino, addiction care network Verslavingskunde Nederland and various other trade bodies and operators.
It served as a public forum for stakeholders to suggest recommendations to the government, based on the measures likely to be included in the new gambling regulations.
An updated gambling act is expected to hit parliament by the end of the year. This follows a lengthy review of the current regulations, which came into effect in 2021, ahead of the online market’s launch.
The government initiated this review last year and published its findings in November. It said measures to encourage responsible gambling and protect players from harm were failing.
State secretary for legal protection Teun Struycken is championing the new bill. In his latest update to parliament, he suggested increasing the legal gambling age in the Netherlands to 21 for higher-risk verticals like online slots.
Calls for stricter approach to gambling ads
Advertising was a prominent discussion point throughout yesterday’s parliamentary session. KSA proposed a new model for gambling products based on their risk profile. In this case, higher-risk products would face stricter advertising rules.
The regulator said in its recommendation the current rules around advertising were “fragmented and complicated” as they were established in response to an influx of gambling ads after the market had already launched.
KSA has called for advertising rules to apply to all operators, including those operating illegally in the market. Similarly, they suggest a prohibitionist system, where all advertising is banned unless it is explicitly permitted. It believes the current system takes the opposite approach. This, it said, would be similar to tobacco ads, which are restricted to registered specialised tobacconists or tobacco points of sale.
At present, operators face a number of limitations around advertising. Influencer advertising is banned and online and social media marketing is heavily restricted, as it must not target those aged under 25.
Also on advertising, the KSA called for higher-risk verticals, like online slots, to have stricter rules in place. It proposed a system which would categorise verticals as low, medium or high risk.
Verslavingskunde Nederland (VKN), the addiction treatment group, went one step further, urging the government to completely ban gambling ads online.
“Gambling advertising may have largely disappeared from the streets, but there is still too much advertising online,” VKN’s submission said.
“Vulnerable groups, such as minors and young adults, can usually be found online and are therefore easy to reach via the various channels. A clear ban on advertising for online gambling is easier to explain and easier to enforce.”
CRUKS exclusion scheme works “poorly”
Elsewhere, the regulator insisted the national self-exclusion register (CRUKS) worked “poorly” in its current form.
“There are hundreds of thousands of problem and at-risk players, of which only a few dozen are registered involuntarily in CRUKS,” the KSA’s submission said.
Instead, it proposed a longer mandatory exclusion period for players involuntarily added to the list. Although it did not give a suggested time frame, the KSA said this measure should come with a “periodic opportunity for review”.
It also proposed simplifying the sign-up process for involuntary requests. Requesting player information from the national Credit Registration Office or the Central Guardianship and Administration Register was also suggested.
Illegal market action a top priority for operators
The proliferation of the illegal gambling market also featured heavily during the conversations in parliament yesterday.
Licensed online operator Circus.nl suggested Dutch players were leaving in large numbers for the illegal offerings.
“Illegal operators aggressively recruit players with promotions that are prohibited for legal operators to offer (high bonuses, cashbacks, autoplay, bonus buys etc), unlimited limits and lack of player verification,” the operator said in its submission.
It urged the government to take “firmer action” against illegal providers, including prioritising banning unlicensed sites and providing the KSA with “broader powers to take action against parties that facilitate illegal providers”, including affiliates and payments and platform suppliers.
Licensed operators hit back at gambling tax increase
Circus.nl said the upcoming tax increase to 37.8% of GGR would only serve to increase black market activity and advised the government to consider a flat tax rate of 29% for licensed operators.
“A sustainable, regulated market is only possible if legal providers can operate profitably,” the operator said.
“The gambling market in the Netherlands is at a crossroads. Without effective enforcement of illegal providers and realistic regulations for legal parties, illegality will continue to grow with all the associated risks. It is therefore crucial that the government not only looks at stricter rules for legal providers, but focuses on effectively combatting illegal competition. Only then can a safe, regulated market be guaranteed.”
State-funded land-based operator Holland Casino also called on the Dutch parliament to reconsider its tax increase.
It said even the staggered increase, which saw the tax rise to 34.2% in January ahead of a further hike next year, had caused a major impact on the operator.
“The next increase will have to be [recovered] from other [parts of the] business,” Holland Casino said in its submission.
It said the tax hike would impact its social responsibility efforts as players will receive a lower payout percentage under the new rates.
“In the context of safe and responsible gaming, we also encourage guests to play with a predetermined budget. A lower payout percentage ensures that guests use up that budget more quickly and can play for a shorter period of time, whereby the gross gaming result does not move along with it. Moreover, this creates an undesirable incentive to let guests exceed their budget.”
Original article: https://igamingbusiness.com/legal-compliance/dutch-parliament-gambling-ksa-recommendations/
