Dutch Gambling Regulator Calls for Innovation, Government Reveals Market Liberalization Progress

Events & Reports

Marja Appelman, CEO of the Netherlands Gaming Authority, Kansspelautoriteit, invited gambling companies to undertake innovative approaches in the country but within the boundaries of what is legal. The gambling official was invited to deliver a keynote speech during this year’s Gaming in Holland Conference, which started yesterday June 19 and will continue today with speeches and presentations dedicated to the gambling landscape in the Netherlands and across Europe.

Ms. Appelman’s speech revolved around two main points – innovation within the Netherlands’ gambling industry and protection of the gambling customer. She drew attention to the need for innovative gambling offering, but pointed out that that offering should not breach existing gambling rules in the country.

The gambling official also pointed out that measures need to be taken so that Dutch gambling customers are prevented from playing on illegal online gambling websites as they cannot be protected in an unregulated gambling environment.

According to recent data, Dutch gamblers annually spend over €250 million on unregulated websites. It has also been estimated that around 3.5% of the Dutch population (nearly 500,000 people) gambles on illegal online gambling websites. Ms. Appelman said that they do not necessarily look for legal websites and that the majority of these people would probably prefer wagering their money in a regulated environment.

The gambling regulator also turned to the Dutch government, stressing on the necessity for the introduction of a legal framework that would provide clarity and boundaries on what is legal and what is not in terms of gambling. Ms. Appelman further noted that she did not intend to criticize lawmakers for the delayed regulatory process and that she understood that a new gambling law should be crafted in a manner that satisfies all political parties participating in the country’s government.

Market Reorganization Progress

It was announced yesterday that certain progress in relation to the long-stalled Draft Bill on Remote Gambling was actually made. The piece of legislation was approved by the Dutch House of Representatives two years ago, but has not seen much movement in the country’s legislature since then. The bill now needs to be voted through by the Senate in order to take effect.

If approved, it would re-organize the nation’s gambling market in a manner that would allow international companies to obtain licenses from Kansspelautoriteit and operate in a regulated field. Under the legislative piece’s provisions, such licensed companies would be taxed at 29% on their revenue. The tax rate was among the topics discussed during the Gaming in Holland Conference on Tuesday, with experts arguing that it is too high and that this could affect negatively player channelization once the new law comes into effect.

The Dutch Ministry of Justice and Security released a statement last night to provide more clarity over a previously discussed language about the physical presence of international gambling companies in the Netherlands. The Ministry pointed out that companies based in the EU or the EEA will not have to set up offices in the country in order to be able to obtain a license from the local regulator. However, companies based outside EU and EEA will be required to have physical presence in the Netherlands.

In its statement, the Ministry further said that players’ protection and the introduction of clear boundaries between gaming and gambling will be one of the priorities of the new regulatory regime. European gambling companies that are allowed to operate in the Netherlands will thus have to appoint a representative who will have to work in the field of addiction prevention in order to be admitted to the Dutch gambling market when it is reorganized.

The Ministry revealed that now as the government has reached an agreement on important points, including the physical presence of gambling companies, the legislative process can be resumed. It is yet to be seen whether lawmakers will be able to meet a previously predicted deadline for an early 2019 implementation of the country’s new gambling law.

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