Kansspelautoriteit (KSA) has sharpened its aim at TikTok and Meta’s platforms, which it stated are ‘awash’ with illegal gambling ads.
The Dutch gambling regulator has lamented that ‘not nearly enough’ is being done to combat the surge of illicit advertising on the platforms.
KSA Director of Licensing and Supervision, Ella Seijsener, revealed that the regulator was forced to send 26,000 reports to Meta regarding illegal advertising in May, building on over 4,600 sent in April.
Seijsener added that the KSA must now move beyond fines, which have proved largely ineffective, to fight a black market that continues to surge while the country’s regulated market stagnates.
Speaking at the Gaming in Holland event from Amsterdam, she stated: “We intend to break down the infrastructure around illegal providers, make it impossible for them to operate in our Dutch markets.
“We are open about the fact that fines are almost impossible to collect and thus are almost never paid. What is more effective is our comprehensive approach by working with hosting providers, banks, payment service providers and marketing companies.”
The KSA is not the first gambling regulator to namecheck Meta regarding black market advertising, after Tim Miller, Executive Director of the Gambling Commission, accused the company of ‘continuing to take money from criminals and scammers’.
More recently, a Flutter-commissioned investigation found examples of transactions through black market sites that occurred within Instagram.
Seijsener told attendees that the KSA was among several European regulators that travelled to Dublin to meet tech companies, including Meta, to discuss the issue and call for more urgent action.
Stagnant market a growing concern
Growth in the Dutch gambling market has been significantly impacted by a tax hike from 30.5% to 37.8%, as well as increased regulatory requirements.
As a result, Seijsener said that the market has not grown in terms of gross gaming revenue and player base over the last six months, despite a wider trend of 11% growth on average in other gambling markets across the European Union.
Though intended to raise €200m in tax revenue, Seijsener reinforced the prevailing view that the tax changes have had the opposite effect, as players have moved to the black market in response.
Estimates suggest that the Dutch government is losing out on €387m annually due to activity on the black market, as the country’s channelisation rate sits at 53%, meaning almost half of every euro spent in the Netherlands is done so through illegal operators.
Amid these challenges, the market is also facing proposals for a total ban on advertising and a limit on the number of online providers.
Seijsener said that the KSA has met with the new coalition government, formed by Democrats 66, the People’s Party for Freedom and Democracy and the Christian Democratic Appeal, to raise concerns over these proposals.
However, she also implored operators to act ‘more in the spirit of the law’ when it comes to advertising to ensure that marketing is done safely, especially in an era where social media advertising is continuing to grow.
She said: “I understand that advertising is necessary to make a legal market visible to Dutch consumers, but there are advertising rules, and they are there for a reason. As soon as new phenomena arise, such as streamers building themselves while gambling, it is upon you to consider these phenomena in the light of existing rules.
“Relying on gaps or ambiguities in legislation or regulation is easy, but if the average Zembra viewer does not see the nuance, you can wonder whether you are in the right or have simply been looking for a loophole.”
