Laws and Regulations – Update on Dutch Online Gambling Market

Another year and then the new law on remote gambling comes into force. This new law will have to replace the current gambling law.

The current legislation does not allow foreign parties to offer their services to Dutch players who like to gamble or want to bet on a sporting event.

Since the beginning of this century, foreign bookmakers have been fighting for compliance with the Maastricht Treaty, namely the free movement of goods and services within the EU. However, the Dutch government has always painstakingly adhered to its gambling monopoly and the EU had already criticised the fact in 2006 that this market had to be released.

Thirteen years and many court cases later, the time has finally come. Last February, the Senate adopted the Remote Gaming Bill. It is not yet known exactly when the new law will enter into force.

The expectation is that the licences will be submitted by 1 July 2020 and that the first parties will be able to legally offer their services to the Dutch gambler by 1 January 2021.

Until then, the Gaming Authority (KSA) will take strict action against violators of the current law. According to the KSA, many of the foreign suppliers are not suitable for offering their services to the Dutch players.

Important issues such as tackling gambling addiction and preventive measures against money laundering are of paramount importance to any gambling company that takes itself seriously. The large foreign gambling companies are often listed on the stock exchange (have to comply with strict rules) and have licences from several Member States within the EU.

For example, the UK Gambling Commission is known as the strictest licensing authority in the sector. However, large gambling companies are eager to gain a foothold in the British market and thus all have a gambling licence issued by the British Gaming Commission.

However, control of these gambling companies is outside the scope of the KSA, so it is high time for its own licensing system whereby the KSA itself can carry out the control of the licensees.

Until then, well-known online casinos have chosen to temporarily leave the Dutch market. Oranje Casino, which in the past focused on the Dutch player, changed its name to Loyal Casino and changed the website to the English language.

This is just one example. All large gambling companies currently dance to the tune of the KSA and all of them with only one purpose: to obtain a gambling license for the Dutch market.