Netherlands Issues First Evaluation of Online Gambling Rules

Published on Nov 22, 2024

In April 2021, the Dutch Gaming Act was amended to allow legal access to online games of chance in the Netherlands. Three years after implementation, an evaluation of the new rules was scheduled. The following article summarises this evaluation, published in November 2024, which assessed the effects of the new rules since their implementation, presented its findings, and arrived at a series of tough conclusions.

Evaluation

The research evaluated the implementation of online gambling rules by consulting publications, 35 stakeholder interviews, and a mystery guest study. A major limitation of the evaluation, however, was the lack of effective measurements due to the newness of the law. Additionally, changes in legislation and regulations since implementation further complicated the measuring of the impact of online gambling. Furthermore, recent changes, such as tighter advertising regulations, were also not assessed due to their late introduction.

General conclusion of the evaluation

The new rules were passed to create a responsible, reliable, and verifiable gambling sector and to direct players towards this regulated option without generating additional demand for online gambling. Overall, the evaluation concludes that the new rules fostered some progress in creating a regulated online gambling market, significant areas are still in need of improvement before these objectives can be fully achieved.

Channeled demand

The goal of channeling demand from illegal to legal offerings has been partially achieved. The increase in marketing and the rise in the number of players, however, suggest that more people are now exposed to gambling risks. The new rules have led to a significant increase in the number of players, particularly young adults, which raises concerns about the potential for increased gambling addiction.

Responsible offering

The new regulations are designed to foster a responsible online gambling environment. This objective, however, has not yet been met. The evaluation report states: "Entrusting the care for online gambling players to entities that offer an addictive product while competing for market share, thereby having a financial incentive to retain players as long as possible, has proven to be naïve."

Reliable offering

The new regulations have been effective in maintaining fairness in games, securing funds, and ensuring that winnings are paid out. Nevertheless, challenges remain, such as preventing fraud and criminal activities like match-fixing.

Controllable offering

The Dutch Gaming Authority (Ksa) regulates the online gambling market, but there are limitations in their ability to monitor the player interface and enforce regulations effectively. Currently, the Ksa does not monitor the player interface of licence holders, which limits their ability to oversee player behaviour and ensure compliance. Despite these constraints, the Ksa's interventions have been effective in addressing violations when detected. 

Recommendations

To address the above shortcomings, the evaluation makes the following recommendations.

  • Implement a centralised duty of care for player protection, rather than leaving it to individual operators. This will also simplify enforcement by the Ksa.
  • The implementation of an overarching gaming limit should be explored. Current playing limits are ineffective since they do not apply across different providers. Players need protection across all licensed offerings, not just individual providers.
  • The existing advertising regulations for games of chance must be strengthened. Currently, it is still possible for vulnerable individuals to receive this advertising, either due to incomplete implementation of the rules or through other channels such as affiliates.
  • There are bottlenecks in sharing information about match-fixing and sports disciplinary offenses, which must be addressed.
  • Enhance monitoring tools for the Ksa:
    • To address the issue of illegal supply, the Ksa, similar to its international counterparts, should be granted the authority for DNS blocking to take down the websites of unlicensed providers.
    • To further counter illegal offerings, the Ksa should have the authority to issue binding instructions to entities within the ecosystem of an illegal provider. This includes hosting parties, payment processors, and advertising platforms.
    • For effective supervision of a gaming interface, the Ksa should be given the legal ability to conduct mystery-guest investigations.
    • The Ksa should be granted legal authority to suspend a license without revoking it, preventing gaming providers from offering their services while in violation.
  • To improve gaming policy, independent researchers and policymakers must have access to player data from various providers. Linking data from different sources allows for a comprehensive study of player behavior across providers.

Conclusion

The evaluation outlines how new online gambling rules have developed in the Netherlands and assesses whether these regulations have met their objectives. In a letter to parliament, the minister responsible for overseeing online gambling promised to provide a response to the evaluation by the end of 2024, which will include proposals for amendments to existing laws and regulations with a focus on protecting vulnerable individuals from the negative impact of gambling. 

For more information on this evaluation and online gambling in the Netherlands, contact your CMS client partner or these CMS experts.