While the Netherlands wanted to build a safe and transparent online gambling market, the reality is quite different. Successive restrictions, the departure of operators and the growing threat of the illegal market: regulation, which is supposed to protect players, could well weaken the entire ecosystem.
A market under pressure
Almost four years after the Dutch online gambling market was opened up, the results are mixed. While the government’s stated objective was to create a safe, transparent and attractive framework for players, the reality is more complex. Successive restrictions, ranging from a ban on non-targeted advertising to the introduction of strict deposit limits and financial accessibility checks, have disrupted the ecosystem.
As a result, several operators, such as Tombola, LiveScore Bet and Scori PRO, have already left the Dutch market. For Justin Franssen, a specialist lawyer, this is only the beginning:
“The big suppliers will remain on the market. But the smaller ones will sell their businesses or not renew their licences, as it will no longer be profitable.”
Beyond the operators that have disappeared, the entire sector is questioning itself. Sanna van Doorn, director of Unibet in the Netherlands for FDJ United, warns of a worrying consequence: the rise of the illegal market.
“Stricter rules will reduce the visibility of licensed operators, which could lead to a ‘mattress effect’, with restrictions imposed on the legal market leaving room for unlicensed providers. Further tightening of the rules will jeopardise the health of the licensed gambling market.”
This scenario is of particular concern to industry players, who point out that regulation must strike a balance between player protection and maintaining a competitive legal offering.
The shadow of a total advertising ban
The issue of a complete ban on advertising hangs over the sector. At the Gaming in Holland conference, Renske Fikkers of the Kansspelautoriteit (Ksa) pointed out that existing rules are still poorly enforced, reinforcing the possibility of a total ban.
However, some experts consider this prospect unlikely. Justin Franssen qualifies this view:
“I would be really surprised if that happened. Especially since we are currently seeing a decline in tax revenues from gambling and operators are surrendering their licences.”
This decrease in revenue for the state makes it difficult to imagine a scenario in which the legal offering would be further weakened.
The key role of the Kansspelautoriteit
At the heart of the debate, the Kansspelautoriteit is trying to assert its position. Its chairman, Michel Groothuizen, acknowledges that the fight against the illegal market is not yet effective. Current financial penalties, such as fines, seem to have little deterrent effect.
Groothuizen is therefore calling for the introduction of B2B licences for software and service providers, and not just for operators. In his view, this change would strengthen control of the value chain and limit the influence of unregulated players.
“In the United Kingdom, you need a licence to supply operators, but this is not the case here, even though I myself am very much in favour of such a change.”
A difficult balance to achieve
The situation in the Netherlands illustrates a dilemma shared by many European countries: how to protect consumers without stifling the legal market? While the desire to regulate is legitimate, increasing restrictions can prove counterproductive.
Between rising taxes, advertising restrictions and illegal competition, the future of the sector remains uncertain. One thing is certain: regulation will have to evolve if it is to maintain both player confidence and operator viability.