New report shows more Dutch gamblers have opted for unregulated online gambling in the past few years
The number of Dutch gamblers opting for unregulated online gambling services has increased 20% over the past two years, according to a survey conducted by market research agency Motivaction and commissioned by Holland Casino.
The recently released research shows that more than 1.86 million Dutch people gambled on websites that did not hold licenses from the local regulator, Kansspelautoriteit, in the period between 2016 and 2018.
Here it is important to note that gambling on unlicensed offshore websites is prohibited under the Netherlands’ current gambling law. In addition, the country’s current regulatory framework does not contain provisions for the issuance of licenses to interested international online gambling operators. Gambling services in the country are provided by state-run entities.
In 2016, when Motivaction’s previous study was conducted, there were 1.5 million Dutch people to have gambled on unregulated websites, which means that the unregulated market grew 20% or by more than 300,000 over the course of the past two years. Poker and online casino games were the most popular online gambling activities. Motivaction further notes that the popularity of sports betting has increased significantly over the past several years.
In terms of revenue generated by unlicensed operations, Motivaction researchers believe the market has remained roughly the same. According to estimates, the Netherlands’ unregulated online gambling market is worth around €600 million. This means that the country is losing significant amounts of tax money every year due to the lack of regulations.
Commenting on the results from the survey, Holland Casino CEO Erwin van Lambaart said that they highlight the need for the re-regulation of the local market to better protect online gamblers.
Senate to Vote on Remote Gambling Bill
Internationally licensed companies have been operating in the Netherlands for years, despite the existing prohibitions and the local regulator’s efforts to prevent local gamblers from being targeted bu such companies.
An effort for the re-organization of the Dutch market was launched a few years ago, but it has been advancing slowly. The Dutch House of Representatives passed the so-called Remote Gambling Bill in the summer of 2016. Generally speaking, the piece calls for the re-regulation of the gambling market in a manner that would allow foreign companies to apply for licenses from Kansspelautoriteit and operate in a regulated environment.
The bill needed to pass the Senate, as well, but a vote on it has never taken place over the past two and a half years. News outlets reported that the much-anticipated vote could finally happen on February 5. It is also believed that the re-regulation drive has gained support from most of the parties that comprise the nation’s Parliament.
While the bill could pass through the Senate as early as next week, the actual re-organization of the market will probably take a while. According to analysts, it will not be before 2020 when the first online gambling licenses will be issued.
The bill contains a number of provisions that aim to ensure that online gambling services will be offered in a socially responsible manner. For instance, each company that obtains a license from Kansspelautoriteit will have to appoint an addiction prevention manager.
It is yet to be seen how lawmakers and regulators will treat gambling companies that have been penalized by Kansspelautoriteit. The regulatory body has issued multiple six-figure fines to online gambling operators that have targeted Dutch players without being authorized to do so, with Betsson and Mr Green being among those.
There have been proposals that such companies should not be allowed to enter the local market once it is re-regulated. Under separate proposals, fined operators would be allowed to apply for licenses from Kansspelautoriteit, but would have to wait for a while before being able to do so as a form of punishment for previously servicing local players.
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