In a sobering reflection on the efficacy of its gambling regulations, the Dutch government recently conducted a review of the Remote Gambling Act (Koa), highlighting significant shortcomings in the measures designed to protect players. Announced in September, this review marks three years since the legal Dutch online gambling market launched in October 2021, serving as a crucial moment for the industry and its oversight mechanisms.
A Regulatory Snapshot
The Remote Gambling Act was designed with ambitious aims, seeking to create a sustainable and safe online gambling environment. However, the review’s findings paint a concerning picture. Despite the passage of time and the operational rollout of the regulations, the review concluded that the Act has not fulfilled its intended objectives of ensuring a responsible gambling landscape.
With current regulations viewed as insufficiently robust, the government has committed to a deeper examination of its framework to better align with the original policy aims, particularly concerning player protection and harm prevention.
Responsible Gambling: A Stagnation in Progress
One of the most striking revelations from the review pertains to responsible gambling. The report asserts that existing measures are not only inadequate but also set to potentially exacerbate harm among a vulnerable demographic, particularly young adults. The review stated, “We conclude the Act has not yet contributed to such a responsible and verifiable gambling offer that it can be said that the policy objectives of the online gambling policy will be achieved in the short or long term.”
This sentiment reflects an urgent need for improvement in safeguarding measures, including underutilized addiction prevention strategies as mandated in the Act. Proper communication regarding addiction is deemed “insufficient,” leaving many players unaware of the risks involved.
Shortcomings of Spending and Deposit Limits
The review identified that the practices surrounding deposit and spending limits failed to act as protective measures. The assertion that operators, driven by their commercial interests, can adequately oversee responsible gambling practices was deemed “naïve.” The competition among operators for market share creates conflicting priorities that potentially sideline player welfare.
The review elaborated, “Placing the care for online gambling players in the hands of parties that offer an addictive product and have to compete with each other for market share has been naïve.” This criticism underscores the inherent conflict of interest that may compromise player protection.
Partial Success in Consumer Protection
While the review outlined several failures, it also recognized certain positive developments in consumer protection, specifically around addiction prevention initiatives like the Addiction Prevention Fund (VPF) and the national self-exclusion scheme, Cruks. Nevertheless, these measures still require further enhancement to achieve their goals fully.
The report also underscored the need for operators to provide a reliable playing environment. Although current policies are not seen as unsafe, there is ample room for improvement in the overall quality of established systems. Data protection measures were noted to be effective, showcasing that while some facets of the regulatory environment work as intended, others fall short of expectation.
The Challenge of Gambling Advertising
In an era where advertising endlessly bombards consumers, the review cast a critical eye on promotion within the gambling sector. Despite a recent ban on most gambling advertisements and a commitment to responsible recruitment practices, the report found substantial evidence that current advertising approaches may foster excessive gambling behavior and inadvertently target vulnerable groups.
The report concluded that “the current implementation of measures with regard to recruitment and advertising also do not contribute sufficiently to protecting the consumer.” With strong controls introduced yet awaiting their anticipated impact, the emphasis on responsible advertising remains an ill-defined area ripe for reevaluation.
Addressing Match-Fixing Concerns
While much of the review critiqued the current state of player protection, it also assessed measures combating fraud and crime. Key aspects like player identification and anti-money laundering controls received favorable mentions. However, concerns surrounding match-fixing were raised, highlighting a lack of effective information-sharing with relevant authorities and sports associations.
Despite these challenges, the review found no indication that match-fixing was prevalent, though it remained a focal concern worthy of further attention in future governance.
Enhancing Enforcement to Drive Channelisation
The review concluded by emphasizing the importance of channelization, with the online gambling regulator, Kansspelautoriteit (KSA), estimating a high rate of legal channelization. However, the government recognizes significant discrepancies in consumer data, revealing that many players are still engaging with illegal sites. Improved enforcement of the illegal market was identified as a pathway to strengthening the legal market and protecting players.
The KSA’s capacity for enforcement is recognized to be lacking, citing that illegal operators often exist in complex jurisdictions, making them challenging to regulate. Addressing these inadequacies is essential for creating a safer gambling environment.
Looking Ahead
While the review decisively identified areas needing reform, it found that comprehensive regulatory changes are not on the immediate agenda for the coalition government. Recommendations leaned towards a singular update of the law rather than incremental changes, and Secretary of State for Legal Protection Teun Struycken hinted at policy-focused adjustments aimed at enhancing duty of care obligations for licensees.
As discussions continue, the potential for stricter regulations around high-risk products, such as online slots, looms on the horizon. The review suggests a crucial turning point for the Netherlands’ gambling sector, where a realignment of policies could facilitate a safer and more responsible gambling landscape for all players.
Going forward, the Dutch government must heed the findings of this review and take decisive action to enhance protections, ensuring the harms associated with gambling are effectively managed, thus safeguarding the future of a rapidly evolving industry.
