The recent introduction of a new set of online gambling regulations by the Dutch Gaming Authority, Kansspelautoriteit, has produced the expected effect of operators leaving the local iGaming market.
On June 1, the day on which the new rules came into effect, online casino brand Royal Panda informed its affiliates and customers that it would no longer be accepting Dutch players. Established in 2014, the operator holds a license from the Malta Gaming Authority (MGA) that allows it to provide its services in multiple European jurisdictions. In full compliance with the new regulations, Royal Panda asked its affiliates to remove all Dutch-targeting promotional content from their websites.
It also become known several days ago that the PolderCasino and FortuinCasino Dutch-facing brands were shutting down their operations as a result from the Dutch Gaming Authority’s move. These two online casinos were, too, licensed by the MGA.
The Kansspelautoriteit’s announcement that it would tighten regulations, under which iGaming services are to be provided from now on, occurred quite unexpectedly and left operators with very limited time for preparation. In addition to the authority’s previous principles of regulating the provision of online gambling options, its new rules now prohibit the use of Dutch-targeting promotional websites with an .nl web extension that redirect to .com sites and the use of visual elements that represent typical Dutch symbols, among other things. The regulator has also announced that it would sanction operators for failing to block Dutch players from reaching their gambling websites.
The Netherlands has long been an attractive destination for online gambling operators due to the big demand for this type of offering among local players. However, with the new regulations practically banning the provision of online gambling without a license from the Kansspelautoriteit, a market of great potential is now closed to international operations.
More operators will certainly rush through the door in the wake of the regulator’s new set of regulations. Although the move came as a surprise, it was not something never seen before in the industry. The online gambling sector has been growing quickly and different countries have responded to this growth in different ways.
We have witnessed similar scenarios of regulators imposing too strict limitations. And actions of this kind have usually produced all the same effect – licensed and recognized operators leaving the market and players being exposed to other operators that are not too strict about maintaining reputation as businesses that follow regulations.
The legalization of online gambling and the opening of the local market for licensed operations has been discussed by Dutch lawmakers for years now. The legislative effort progressed significantly last June, when the legislature’s House passed an iGaming bill. The piece was handed to the Senate, but a vote on it is yet to take place.
