What’s going on in The Netherlands?
At Slot Gods we like to keep an eye on what’s happening globally. Looking at what’s going on in one country can provide useful insights into trends and patterns that we might see develop elsewhere.
This is especially true where regulation is concerned. A prime example of this is some of the things going on in The Netherlands at the moment.
A little background…
The online gambling industry in the Netherlands is still in its infancy. Before April 2021, online gambling was illegal there, although many players gambled at international sites. The introduction of the Remote Gambling Act enabled licensed casinos to offer online gambling legally.
Since then 30 operators have been granted licences by the Netherlands Gambling Authority (KSA), with 27 of them currently active.
So, what is happening in The Netherlands?
These are turbulent times for some of our friends on the continent. The KSA is wrestling with a number of issues, and there will be some critics who suggest that the KSA has created some of these problems itself.
Current bones of contention in The Netherlands include a flourishing black market, disputes over gambling advertising regulation, and concerning numbers of problem gamblers.
At the Gaming in Holland conference in early June, the KSA’s Renske Fikkers highlighted a shift in public attitudes towards gambling, with “more and more considering it a high risk product” outlining the KSA’s intention is to address a perceived lack of player protection.
Black market
One of the most concerning trends is the number of players turning to the black market – a major talking point at the conference.
Players are flooding to illegal sites to negate restrictions, maintain anonymity, and to enjoy the sometimes-larger bonuses offered by these non-tax-paying sites. Estimates suggest around 25% of Dutch gamblers now use illegal operators.
Players not even aware?
It’s possible that some players may not be aware they’re using illegal sites. The only way to tell with any certainty is to check the casino’s licence, which many players don’t do.
The concerns are two-fold: player safety and the economy. As one speaker at the Gaming in Holland conference put it, for “every Euro being spent on online gambling in the Netherlands, approximately 50 cents ended up in the pockets of black market operators”.
Collaborative approach
The KSA has called for a more collaborative approach in addressing the issue, one which involves the banks and tech providers. It also wants more powers itself, including the right to blacklist and remove certain websites.
Problem gambling
The KSA is concerned about rising rates of problem gambling which are closely related to both the rise in black market gambling, and the rise in noncompliant advertising.
On a positive note, Fikkers stated that the KSA is enhancing its efforts to reduce problem gambling rates. She revealed a new programme and a new dedicated department of the KSA that aims to increase awareness-raising and bolster the player support infrastructure.
However, these efforts will mean little if they are undermined by noncompliant, illegal sites, which frequently offer no player support, self-exclusions schemes or safer gambling tools.
Recommended limits
The increased use of unlicensed sites suggests tight regulations at licensed casinos. So it’s interesting to note that initial recommendations around gambling spend suggested keeping it under 30% of net income!
On 1 October 2024 deposit limits were set at 700 Euros for players aged 25 and over, and 300 Euros for 18-24-year-olds. Average monthly net pay in The Netherlands is 2800-3300 Euros.
Advertising and marketing
Fikkers has said that a total ban on gambling advertising is “increasingly realistic”. The main issue here appears not to be that the rules are too lax, but that they’re being ignored “far too often”.
The KSA claims to have reached a critical point where, in order to ensure that gambling advertising remains responsible, it will have to issue a blanket ban.
This may seem drastic or heavy-handed, but perhaps the KSA will wait to see the effects of this year’s phasing out of sports sponsorships.
Implications of a total ban
A total ban could have a serious impact on the gambling industry. Revenues could plummet dramatically. The KSA also needs to factor in the many operators whose marketing does comply; they may feel mistreated.
Proper marketing actually helps
It could also be the case that proper marketing is one of the ways in which legitimate operators can distinguish themselves from black market operators. Without ads, players will find it even harder to tell the difference.
Advertising increases participation
That said, gambling advertising does increase gambling participation, especially among younger, more impressionable groups, and many would argue that ads normalise risky behaviours. For these reasons, stricter regulations need to be considered.
Another option?
Perhaps the KSA could respond to the increase in noncompliance with stricter fines, rather than an outright ban.
Meanwhile in neighbouring Belgium…
Elsewhere in Europe, things look similarly worrying when it comes to the black market. The Belgian regulator has commissioned a report on gambling behaviours of the 18-30s. 25% of this age group use illegal platforms, with 8% using these platforms exclusively.
This suggests that illegal gambling is becoming widely normalised, and follows a regulation change in September 2024 which raised the minimum gambling age from 18 to 21.
Overall gambling participation among young Belgians is high In 2023, the figure was 51%. This number has since decreased to 39%, but huge numbers of under-21s still gamble, and they do so at illegal casinos.
What can we learn?
Alarmingly, it appears that The Netherlands is just ahead of the curve when it comes to many of the problems it’s facing. Other countries, including Britain, are seemingly hot on the heels of the Dutch. For this reason, for better or for worse, there are things to be learnt from different countries which may ultimately impact on other jurisdictions and even the industry globally.
Advertising regulations
Gambling advertising regulations are changing in the UK too. Despite gambling sponsorships and adverts being big business, there are concerns about their impact. The English Premier League is banning gambling operator shirt front advertising partnerships from the start of the 2026-27 season.
Whether or not the Gambling Commission would issue a full ban, similar to what the KSA is suggesting, will depend on how often UK advertising regulations are breached. If British operators comply, perhaps this is one way in which we can avoid following in the KSA’s footsteps.
Age restrictions
Taking a leaf out of the Belgian regulator’s book, the KSA is looking to raise the minimum age for certain forms of higher-risk gambling to 21. Whilst no such thing has been discussed in Britain, recent regulations have acknowledged and addressed the vulnerability of younger players. Time will tell, but a similar move in Britain isn’t entirely implausible.
Heeding warnings?
Regulators all over the world have a tricky balance to strike, one that weighs the safety of players against individual freedoms and the economic viability of their respective gambling industries.
The UK Gambling Commission (UKGC), for instance, has long been regarded a global leader in gambling regulation. However, some recent policy implementation in Britain suggests the UKGC is failing to learn from situations that have evolved in neighbouring countries. Whereas many would think it wise to gently apply the brakes when a threat comes over the horizon, the UKGC appears to be bearing down and accelerating.
Examples of this include the decision to go ahead with vulnerability checks despite public opposition, and the tightening of regulations despite warning signs from elsewhere. The UKGC seems a bit blinkered at the moment – which doesn't bode well in a constantly evolving, challenge-rich industry.
Summary
For the time being, the situation in Britain is relatively stable, and the trends seen in other territories are not yet as pronounced in the UK.
The Gambling Commission will no doubt be looking out for patterns similar to those observed in The Netherlands, but whether or not they’ll learn from the experiences of others is another matter. If recent moves are anything to go by, it’s hard to feel optimistic.
Whilst its efforts to lead the charge in modern gambling regulation are admirable, The Netherlands has landed itself in a bit of a pickle. The recent tightening of regulations there and in the UK appears to be pushing players to the black market, with neither the KSA or the UKGC seemingly willing to acknowledge the pattern.
For the UK, at least, it doesn’t yet seem too late to reconsider recent regulatory changes. It should be commended, rather than considered a sign of weakness, if the Commission were to acknowledge the odd misstep and swerve to avoid facing the same issues as The Netherlands.