The Dutch government has moved to implement a complete ban on online gambling ads and bonuses, in a significant setback for the regulated market in the country.
With a potential shift to raise the gambling age also being strongly rumoured, the government warned that the rise in problem gambling is ‘especially concerning young people and young adults, who are particularly vulnerable’.
But immediately put forward is the ban on offering bonuses and a complete shutdown of advertising, a move that will likely fuel debate around infringement of freedom of trade laws.
The government cited that the intensified regulation is essential as the number of people who have started gambling since the legalisation of the online gambling market has increased significantly.
However, the KSA has stated that the regulated market has remained stagnant over the past six months, whilst the black market has experienced exponential growth.
State Secretary Claudia van Bruggen stated: “I find it particularly concerning that more and more people, and especially young people, have started gambling online and are getting into trouble as a result. It is high time to reverse this trend. With the proposed measures, I am taking an important step to better protect people against the negative effects of gambling, such as addiction and debt. Special attention is being paid to young people and young adults because they are particularly vulnerable to the risks of gambling.”
Interestingly, the government is also seemingly on the cusp of far more stringent affordability measures, stating that it is formulating an overarching deposit limit for online gambling.
Furthermore, it has also outlined that players wishing to increase their deposit limits will need to ‘first demonstrate that they have sufficient financial capacity to do so’, and a means test is being developed for this purpose.
The government revealed that this test will place a closer look at whether the player has been placed under guardianship or administration, has payment arrears, and assess the player’s financial situation before a player is allowed to increase their limit.
The move risks fierce retaliation from an already embattled industry, though, as the country continues to struggle to navigate a surging black market threat.
Whilst the proposals were always touted, there had been optimism that the measures were about to be withdrawn or diluted, as the KSA had reported positive feedback from meetings with the government.
As recently as last week, KSA Director of Licensing and Supervision, Ella Seijsener, told the Gaming in Holland Conference that she felt the concerns of the regulator were being taken ‘very seriously’ by the government.
She emphasised that they have been vocal in opposition to the total ban on advertising for online providers, and had also been critical of the plan to limit the number of online licenses for online providers.
Pascal Chaffard, Chief Online Betting and Gaming Officer at FDJ United, also rallied against the potential plans.
He stated: “Targeted restrictions tied to compliance standards would achieve the same consumer protection goal without driving players to the unregulated market where there is no protection at all.
“The paradox we are faced with is that Europe’s most consumer protection-conscious markets, through their own set of measures, does the most damage to consumer protection.
“Every restrictive measure aimed at licensed operators that does not simultaneously address illegal operators makes the problem worse. The advertising ban, as currently proposed, risks accelerating the risk shift to illegal operators that everyone says they want to prevent.”
