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Online Gambling Netherlands

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The measures taken in connection with COVID-19 can be felt in every sector, including games of chance. Fortunately, public life is gradually starting up again and landbased casino’s are expected to reopen on 1 July 2020. Also the process leading up to the entry into force of the Dutch Remote Gambling Act (Wet kansspelen op afstand) is moving ahead.

  1. The Netherlands is slowly emerging as one of the hottest online gaming markets in Europe and some of the most reputable casino websites in the world are turning their focus towards the Dutch iGaming market.
  2. Online gaming is not regulated in the Netherlands, which has caused a lot of problems with the local authorities, the operators and the Dutch casino players as well.

For instance, last week the Permanent Committee for Justice and Security of the Dutch Lower House held a meeting about among others the draft Decree Remote Gambling (Besluit kansspelen op afstand, “Decree”). It was decided that as a next step, the Decree will be scheduled for a plenary debate. The debate is currently scheduled for next week but the date may shift. We expect that it will take place before the summer recess starting on 3 July 2020.If everything goes as planned, the step thereafter will be that the Decree will be sent to both the Dutch Council of State (Raad van State) for advice and the European Commission, in order to be notified. This brings the Netherlands one step closer to the opening of the market.

No use of existing database

One important issue that came up recently in responses from the Minister for Legal Protection is the introduction of a prohibition to make use of the customer database that online operators built up before becoming licensed in the Netherlands. This prohibition shall be included in the license term. The Minister stated the following:

“A provider who offered remote games of chance in the Netherlands without a license prior to the entry into force of the Koa Act, and who is nevertheless in possession of an online gaming license after an intensive reliability assessment by the Gaming Authority, may not use his database of players in the Netherlands that he has built up in the previous period … .”

The reliability of applicants that already have been active on the Dutch market, will be assessed by the Netherlands Gaming Authority (Kansspelautoriteit; “KSA”) on the basis of the compliance with the so called ‘cooling off-criteria’. Earlier this year the Minister augmented the cooling off period from 2 to 2,5 years prior to the date on which an application is filed by an operator:

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“In the transition to the necessary regulation of remote games of chance, the Gaming Authority, in the interests of a prosperous channelling of this reliability assessment, temporarily assigns less weight to any previously illegal offer, provided the provider concerned has refrained from offering online games of chance specifically aimed at Dutch consumers in a period of at least two and a half years prior to the licence application and has demonstrably verified the age of players at the time of registration as of 1 January 2020.”

Advertising restrictions: role models

The Minister also elaborated on some advertising restrictions. The use of role models that have a substantial reach among minors and young adults (below 25) shall be prohibited. The Minister specified that role models will have to scrutinized in view of their reach on among others social media, in series and movies or music. He also explained that sponsorship of youth teams and logos of licence holders on products worn by children is covered by the prohibition to target minors.

Timing and next steps: market opening in 2021

  • The chairman of the KSA announced last week that the KSA will disclose more information about the connection procedure between operator’s customer databases and the Central Register Exclusion Games of Chance (Centraal Register Uitsluiting Kansspelen; “CRUKS”) by mid-June. also indicated that although operators are responsible for the implementation of CRUKS, the KSA is committed to facilitate this process. For instance, operators will be able to ask for technical guidance from the KSA, which will then be provided through interactive sessions.
  • It is also expected that the KSA will publish the draft policy rules regarding the reliability of the applicant and the draft application form this summer.
  • If all these steps are taken in time, theoretically it is still possible that the Remote Gambling Act will enter into force on 1 January 2021 and that the market will open on 1 July 2021. However, given the tight planning, a delay of one or two months seems well possible. If this is the case, the start of the license application process will accordingly shift from 1 January 2021 to a few months later, the same applies to the market opening.

Licenses and what preparation

Operators that did not offer online gambling to the Dutch market without a license, shall be able to apply for a license as soon as the application process opens in 2021. Unlicensed operators that were already active have to comply as noted earlier with the cooling off criteria and are expected to file their applications as of 6 months later. It is expected that a large amount of operators will apply for a license when the application procedure starts. This is also the expectation for operators that have to comply with the cooling off-criteria and that can first apply 6 months later. In total, the KSA is expecting to grant around 90 licenses.

As the requirements for the license application are for the majority available, see also our previous blog, and as these are quite extensive, operators interested in the Dutch market are recommended to start preparing their applications!

For questions, more information or assistance with an application for online gambling in the Netherlands, you can contact Machteld Robichon or Fransje Brouwer.

After many years of waiting, the market for online gambling in The Netherlands will finally open. As things currently stand, it will be possible for providers to request a license as of 1 January 2021.

The principle underlying the regulation of online gambling is to guarantee a safe environment for players to participate in online gambling, where gambling addiction and (gambling-related) crime is prevented. In this respect, the Dutch government has a ‘channeling’ objective of 80%, meaning that it aims for 80% of the people that participate in online gambling to do so with a legal and therefore reliable provider. By opening the market, the government expects that it will become easier to supervise the online gambling market. This supervision will be carried out by the Dutch regulator in the field of (online) gambling, the Dutch Gaming Authority (Kansspelautoriteit; “DGA”).

Applications for licenses will have to be submitted to the DGA for an amount of € 45.000 and will only be granted when the applicant meets a set of strict legal requirements set forth in the Remote Gambling Act (Wet kansspelen op afstand; “RGA”), the Decree Remote Gambling (Besluit kansspelen op afstand; “DRG”) and the Ministerial Decree Remote Gambling (Ministeriële regeling kansspelen op afstand; “MDRG”). Main features of these requirements are the reliability of the applicant, responsible play and crime prevention.

Reliability of the applicant

The reliability of the applicant, including its directors, policy makers and shareholders, must be beyond any doubt. In this respect, the applicant must provide information regarding (among others) criminal incidents, financing and an overview of affiliated companies.

The reliability of applicants that already have been active in the market, will be assessed by the DGA on the basis of the compliance with the so called ‘cooling off-criteria’ for a period of currently 2 years prior to the date on which the application is filed.

The cooling-off criteria are:

  • no use of a .nl-extension;
  • no use of the Dutch language;
  • no advertising on television, radio or printed media, targeting the Dutch market;
  • no use of domain names containing typical wordings referring to The Netherlands in combination with gambling references;
  • no references from which a focus on The Netherlands can be derived, i.e. via wordings, symbols or images;
  • no use of payment methods that are used exclusively or mostly by Dutch people, such as iDEAL;
  • not allowing minors (< 18) to participate in online gambling.

Also, the applicant is required to have a policy in place to guarantee the continuity of the reliability.

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Responsible play

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The applicant must also have policies and measures in place that guarantee that minors and other vulnerable groups are protected against the risks of online gambling.

As for minors (< 18), this means that they have to be excluded from participation in online gambling in any case. As for youngsters (18 – 24), this means that they cannot be a target of marketing- and advertising activities. In line with this, it is also prohibited to use the services of individual professional sportsmen. Advertising that is permitted must be in accordance with the risk analysis that the license holder is required to make of its offer.

As for adults, there is (among others) a Central Register Exclusion Games of Chance (Centraal Register Uitsluiting Kansspelen; “CRUKS”). As the name suggests, this register contains the names of persons that are (temporarily) excluded from online gambling, for instance due to excessive participation. Such registration can be both voluntary and involuntary. The tender for CRUKS was published recently. The DGA developed and tested the application in-house. The tender relates to the hosting, functional and technical application management and further future development of the application.

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Furthermore, in order to prevent online gambling from even becoming excessive and eventually turn into gambling addiction, the license holder must provide for adequate trainings for its personnel.

Crime prevention

In order to provide for a crime free-environment for online gambling, applicants must demonstrate compliance with the provisions of the Prevention of Money Laundering and Terrorism Finance Act (Wet ter voorkoming van witwassen en financieren van terrorisme) and the Sanctions Act (Sanctiewet). The first act contains provisions on risk management, client investigation, reporting of unusual transactions, retention of supporting documents and training. In view of compliance with the latter, relevant are whether international measures were issued in response to a violation or threat to international peace and security.

Supervision by the DGA

When applicants are granted a license, they have to report frequently to the DGA in order for the DGA to exercise its supervisory powers. In this respect, license holders are also required to have a Control database (Controledatabank; “CDB”) in place that is accessible by the DGA. Via the Control database, the DGA can view digital data from license holders and verify whether they comply with certain license conditions.

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Gambling tax is due on prizes that exceed the (gross) amount of €449 and must be paid by the license holder. The tax rate is 29%.

What’s next?

At this moment, the responses to the lower regulation that was published for consultation are being processed and details in the legal framework are specified. The amended Decree was sent to Parliament this week. The technical requirements regarding CRUKS and the CDB are expected before the start of summer. We expect that by then, the (draft) license application form will be published for consultation, after which a response can be submitted. However, with the information currently available it is well possible to already start preparing for submitting an application. As the saying goes, well begun is half done.

For questions, more information or assistance with (the preparation for) an application for online gambling in the Netherlands, please contact Machteld Robichon or Fransje Brouwer.