Online Casino Regulation in the Netherlands: What Will Change in 2021?
The Holland doesn’t permit residents to gamble at betting sites and casinos without CRUKS & license in Netherlands. The country has no law that allows it to grant online gambling licenses.
But the Netherlands online gambling industry is on the verge of undergoing a huge change. Operators may be able to submit applications for online gambling licenses from January 1, 2021.
What does the Dutch gambling market comprise at present?
The Dutch offline gambling market is well regulated, comprising a casino monopoly of 14 casinos operated by Holland Casino, charity lotteries, a state lottery, a monopoly on sports betting and lotto, a monopoly on horse racing, and private operators offering over 42,000 slot machine games in bars, restaurants, and arcades.
Residents have no dearth of regulated gambling options. The only disappointment is that the country doesn’t have licensed online gambling sites.
The country’s legal gambling sector has turned over profits exceeding €2 billion. The government uses €500 of it to fund various charities.
What is the Kansspelautoriteit (KSA)?
The KSA is a Dutch governance body that independently supervises and regulates chance-based games within the European section of the Kingdom of Netherlands. It receives funds through taxes imposed on licensed gambling operators. A board of directors governs the KSA.
The KSA comprises the following six departments:
- Communications, International Affairs and Governance Department
- Facility Management Department
- Enforcement Department
- Supervision and Operator Department
- Legal and Development Department
- Supervision and Consumer Department
The Ksa performs the following tasks:
- Prevents addiction to gambling
- Prevents crime and illegal activities in the gambling industry
- Protects and informs consumers
The political responsibility of framing gambling policies in the Netherlands lies with the Minister of Justice and Security.
Who has the license to offer legal gambling services in the Netherlands?
Currently, the Dutch State Lottery, the Holding Nationale Goede Doelen Loterijen, Fair Share, Samenwerkende Non Profit Loterijen, Lottovate, and Impact Lottery hold licenses to offer lottery games to the residents of the Netherlands.
The Sportech Racing B. V. (Runnerz) and De Lotto (Toto) have the license offer sports betting. Holland Casino is legally permitted to run casinos all over the country. Along with several bars, restaurants, and arcades, Holland Casino also holds the license to offer casino slots to Dutch players.
What is the Remote Gambling Act?
The Senate approved the draft bill on remote gambling on February 19, 2019. This approval enables online gambling businesses worldwide to apply for a license to operate in the Netherlands. Currently, it is illegal for any company or individual to offer online casino gaming services in the country.
The Remote Gambling Act is a better version of the Betting and Gaming Act. When enforced, it will legalize online gambling in the country. Like many other countries that have legalized online gambling, the Netherlands wants to establish stringent conditions for operators of online gambling and betting services.
These conditions, which will be mentioned in the gaming license, will help to prevent gambling addiction, protect consumers, and ensure that the gaming service is fair.
What are the stringent conditions existing and potential gambling companies will be expected to comply with?
The Ksa has three major conditions, as follows:
- Licensed gambling companies have to link with the Central Exclusion Register (CRUKS). Players who feel that they have become problem gamblers can request to be temporarily listed in the CRUKS. In this case, they will not be allowed to access any Ksa-licensed online gambling service for as long as they wish.
- Licensed operators have to monitor players’ gambling activities and intervene whenever they observe risky gambling patterns.
- They have to establish a Control Database (CDB) comprising operational data of their gambling products. They also have to provide the Ksa access to their CDB so that it can easily monitor their activities.
When will the Netherlands enforce the Remote Gambling Act?
The exact date when the Netherlands will enforce the Remote Gambling Act is not known at the time of writing. The Minister for Legal Protection has to determine the date.
The Ksa will soon begin the task of processing applications to offer online gambling and betting services in the country based on policy rules, subordinate legislation, and legislation. Currently, the Ksa and the Minister for Legal Protection are consulting on future actions. Also, establishing licensing procedures is a time-consuming task.
The Ksa expects to start accepting and processing license applications from January 1, 2021. This means that the online gambling and betting market will open half a year later. But right now, nobody can say when exactly operators can submit their applications.
How many online casino licenses will the Kansspelautoriteit grant?
There is no limit to the number of online gambling licenses the Ksa will grant. The Ksa calls it an open system, which permits any business capable of meeting the licensing requirements to submit applications. A company need not necessarily be an operator of online gambling services to apply for a license and receive it.
When can operators of gaming and betting services submit licensing applications to the Ksa?
The exact date is currently unknown as the Ksa has not yet established a licensing procedure. When the Ksa is ready to accept and process licensing applications, it will announce the same on its official website and social networking sites.
Meanwhile, operators can submit an interest form to the Ksa. They can download this form via a link on the Ksa’s website. The Ksa will then send them updates on the latest developments.
What is the Kansspelautoriteit doing to curb unlicensed gambling sites at present?
The Ksa will take action against offshore online gambling and betting sites until the Remote Gambling Act is enforced. It has already increased fines for unlicensed online gambling operators €150,000 from to €200,000.
The governing body warns players against signing up at offshore online casinos. Players cannot trust unlicensed online casinos to offer fair games and pay winnings promptly. Currently, the Netherlands government cannot protect residents from online casinos without Dutch license as they are not based and licensed in the country.