iGaming Daily

Charlie Horner (00:03.17)
This afternoon, the Dutch Karma will begin its deliberation on applying a comprehensive ban on gambling advertising across all media. The debate begins proceedings to overhaul an unloved remote gambling act, the framework that has governed online gambling in the Netherlands since twenty twenty one. The ban on advertising carries consensus across the Dutch political spectrum, yet settling the overhaul is split on the complex matter of banning incentives, imposing universal limits.

The ban on advertising carries consensus across

Charlie Horner (00:39.64)
This afternoon, the Dutch Karma will begin its deliberation on applying a comprehensive ban on gambling advertising across all media. The debate begins proceedings to overhaul an unloved remote gambling act, the framework that has governed online gambling in the Netherlands since twenty twenty one. The ban on advertising carries consensus across the Dutch political spectrum, yet settling the overhaul is split on the complex matter of banning incentives, imposing universal limits, restricting slots, and applying new layers on customer care of duty.

So a Dutch drama begins, but no one knows where it will end. Welcome back to iGaming Daily, supported by Optimove, the creator of Positionless Marketing and the number one player engagement solution for sports betting and iGaming operators. I'm Charlie Horner, and to discuss this today with me is our editor at large, Ted Manmuir, and iGaming Expert, senior journalist Christian Lee. Ted, thanks for joining us today on on the show. this afternoon the the karma will begin its

KOA deliberations. To kick us off, can you tell us how Dutch gambling got here and and the importance of these reviews?

Ted Menmuir (01:45.424)
Okay, so yes, this afternoon the KMA, the House of Representatives, will review the proposal to implement a blanket ban on advertising across all Dutch media platforms.

Now, this comprehensive ban is supported by the tripartite liberal coalition, former Democrats 66, D66, the People's Party, the VVD, and the Christian Democrats. And it is widely anticipated that it will pass into law. the advertising ban should really be thought of as kind of the first chapter of the wider repeal and replacement of the remote gambling act, COA, that has governed Dutch online gambling since April 2021.

The Oboe Hall of Coa is politically charged and prior to leaving office, former legal rights minister or secretary, Teun Strichen, he confirmed that he'd reviewed over 150 proposals related to online gambling.

The framework that will be debated and the key policy areas are focused on whether to implement it beyond the gambling advertising ban, it's a ban on bonus and promotional incentives, raising the minimum age on high risk games to 21, implementing a universal deposit limit across all licensed operators, imposing a further layer of affordability checks and duty of care onto vulnerable customers.

and then significantly expanding the enforcement powers on illegal operators of the KSA, the Dutch gambling inspectorate. So there are so many elements of how the Dutch online gambling will be reshaped and where it lands. It's going to be a very, very tricky affair.

Charlie Horner (03:39.798)
Very tricky indeed. It seems like it's an entire overhaul of the regulatory system. Christian, thanks for joining us on the show today. where where do each of the Dutch parties stand on the matter of replacing COA? Is it is it you know, is this is there a consensus or is there a bit of nuance to this?

Christian Lee (03:57.552)
I believe there's, from what I've read, it seems to a of a consensus in terms of politicians across the political spectrum seem pretty against gambling. It's a sentiment that I'm getting out of the Netherlands at the moment. Obviously you've got the trade bodies and the operators fighting against this, but overall it seems like politicians really do have a bean. They're born here about the extent and visibility of gambling across the Netherlands.

Charlie Horner (04:24.578)
Yeah, it's it's extraordinary really when you consider that this market only came to be in in the last five years, it's gone from, you know, one of the hottest anti hotly anticipated markets to to now where it's been completely overhauled. Ted, you you say there that there are, you know, tricky tricky aspects to to settle on on this new remote gambling act. Where where do you see this coming down to and and what do you what do you expect any new act to to look like?

Ted Menmuir (04:52.335)
This, I mean, you you're asking the kind of the most pertinent question about Dutch gambling, where it lands. And okay, yes, there is consensus that the COA Act needs to be repealed and replaced. But I think across the Dutch political spectrum, there are challenges there about exactly how it lands and in what way the market will be reshaped. There's concerns about the licensing of operators.

Also ethical questions here about the overreach on duty of care. Also, as we know in the UK, affordability and that kind of verification of affordability, especially in Dutch politics, huge significance and fractures on the data rights of individuals and what they should be presenting to online platforms in order to gamble. Also, increasing the age range on 21 to

to 21 on high risk games, how that mechanism will be implemented.

Dutch ministers know that since the co-act has been implemented and following these kind of changes there's been a significant encroachment from the black market so the KSI as the regulatory authority is aware of the liabilities of the market and how it will be re-regulated. I think it's going to really be interesting to see how it plays out.

the trickier elements of resettling the market.

Charlie Horner (06:28.206)
Yes, certainly. Look, i y you mentioned the black market encroachment, Ted. channelisation rates around fifty percent. That is, you know, that's that's quite stark. That's you know, really, really troubling for for the regulated sector. Christian, I'll bring you in now. What what what has the industry said in response to the debate that that's happening in the karma this week? and are are you know concerns being heard on on those channelisation rates?

Christian Lee (06:55.823)
As you would expect, the trade bodies have been pretty vehemently against any sort of blanket ban. VN Lock, I'm not going to try the full name in Dutch, they have called for a more nuanced approach, looking at things like duty of care, looking at things like how they can target black market advertising without bringing in the regulated sector into the same.

into the same sphere. think the way we look it, it seems like Dutch politicians in a way have of conflated the black market with the regulated market, which is something that happens in a lot of places. And rather than addressing the black market, they sort of then turn around and go, no, gambling is gambling. We need to reduce its visibility.

Charlie Horner (07:40.739)
Yeah, yeah, absolutely. I mean i it it goes back to a conversation when we had Andy McCarran on the podcast last week or at the beginning of the week. You know, a lot of this is ideologically charged, isn't it, Ted? And what w do you do you think that operators' concerns about channelization w will be heard ultimately, or do you think it's you know, it's gonna be ignored?

Ted Menmuir (08:00.647)
I think the KSI, as a regulatory authority, they are kind sensitive to the matter of the black market and the call on greater kind of enforcement powers against illegal operators. However, that's only kind of one side of the battle against the black market, that being enforcement. I think the other side is that you have to have political will to actually go and tackle that. And in many ways, what...

political parties are calling for is really kind of significant tightening of the market that will affect how consumers behave. The real worries here are on the implementation of the 21 age limit on high risk games and also the implementation of universal deposit limits which we've seen in other markets just simply do not work.

Charlie Horner (11:38.254)
Okay, Ted, Christian, let's go for a quick break and we'll come back and we'll discuss this a little bit more.

Charlie Horner (11:48.077)
Welcome back to iGaming Daily. Now I think it's important that we go back and have a little bit of a history lesson and and just really chronicle what's happened in the Netherlands over the last five years because Ted, we were reporting on on the opening of of the market back in twenty twenty one and it was a really hotly anticipated market and now, just five years later, it's the poster boy of over regulation in in Europe. So what what happened in those five years to on to go on that journey?

Ted Menmuir (12:30.679)
So look Charlie you're right, the car market was kind of at one point was viewed as yes a very successful way to implement and to bring to market an online gambling regime.

However, I just think that years of political intervention and not letting the framework settle really, really fractured the market and it fractured the competitive elements of how the market would unfold. The other thing here is that there's never been an outright wide consensus on how online gambling should be governed in the Netherlands. I think it just splits every political party on the number of licensees.

what restrictions should be applied and it never kind of really...

got to terms with its responsibilities of consumer rights and duty of care, which are now being put to the forefront of this debate. It's been a very, very hard five years for Dutch licences. on top of year-on-year compliance restrictions, we've now seen the tax level doubled, kind 48%. And also, we have seen huge black market encroachment.

not a functional market it will be rewritten but as he said in the introduction no one knows where this ends and no one knows where this lands.

Charlie Horner (14:03.438)
Yeah, and that's what causes so much uncertainty for operators and other stakeholders. and I think there's been at least two elections since the market went live, which is which doesn't help things either, particularly when there's, you know, different coalitions that have to go into government together. Christian, Ted mentioned there the the tax rates that and and those have, you know, nearly doubled to to to over thirty eight percent in the last couple of years. How much of a squeeze is that causing for operators and what what other factors are making it quite tough to compete?

in the Dutch market against those black market operators.

Christian Lee (14:36.239)
Yeah, I think it's a massive squeeze. Again, we look at comparable markets in the UK, we're having the same debate at the moment about gaming duty and things like that. I think we mentioned deposit limits in Netherlands, very stringent. There is very onerous duty of care responsibilities. Obviously, we know that duty of care is essential for gambling, but it does get to a point sometimes where...

It takes away more from the player experience than it actually gives in terms of protecting players. So sort of like this smorgasbord of different factors that come together make it where it's hard for regulated operators to compete with the black market when the black market chooses not to offer any of these options can provide better odds, provide products that

regulator operator's card and eventually players vote with the fee a lot of them don't care about don't care about the fact that they're getting taxed more it's just the fact i want the better experience and i can get it elsewhere

Ted Menmuir (15:38.468)
Yeah, and can I just add to that?

One thing is that yes, in 2021, CoA was implemented. But what we've seen about the Dutch market is that it's always been in a state of transition. So prior to CoA, there was 12 years of operators challenging and asking for the Kmart to legalise sports betting and online gambling. And during that period, there was kind of this great transition of will they or won't they? And there was no kind of legal oversight of the market.

Dutch consumer has had a long term to engage with unlicensed operators. Prior to COA and even following its implementation, always been a market in transition.

Charlie Horner (16:24.226)
Yeah, never really had any time to settle either. I think it's you know, it's i you both raise an interesting point that, you know, th of course players have had exposure to black market or or, you know, grey market in in the past. But I think we would all agree that a certain level of duty of care and and compliance factors are essential. I guess it's just about finding the the right balance and finding where where that line should be. And I guess that's what the purpose of some of this redrawing of the of the sector will be.

Ted Menmuir (16:27.287)
Mm-hmm.

Charlie Horner (16:52.888)
Just as we bring things towards a close now, Christian, d do you think that there's a a case for for optimism in the in the Netherlands? Does it remain a commercially viable market with a mature player base? Is there opportunity for growth there or do you think it's just been bogged down by this constant reevaluation, this constant period of transition? what what what do you make of it?

Christian Lee (17:17.591)
I think we're very much at the tipping point right now. I if regulation carries on the way it is, it gets to a point where it might not be viable for many, especially if this full advertising ban comes into place.

if stakeholders can be successful in halting this action to start with and then helping the government to reshape the market in a way that works for the government and operators, there is a chance, I think, FDJ United said in their results that they'd seen some shoots of growth.

in the Netherlands, which is a market that they've been struggling in. that gives you a little bit of an idea that there may be something there. But I think as we say a lot in this podcast, it's just a case to wait and see how this debate goes.

Ted Menmuir (18:01.391)
Look, I'll add to what Christian's saying. One thing to realise about the Dutch market is that...

Charlie Horner (18:01.538)
First favourite hashtag there. Ted, please add. Yeah.

Ted Menmuir (18:07.503)
Okay, I'll add to what Christine is saying and one thing to kind of recognise about the Dutch market is that everyone's on the clock at the moment. So Claudia van Bruggen, who's the legal minister, she's urged everyone that she really needs to settle these debates by end of year. However, with no consensus, I kind of see this going into 2027.

So I don't think that they will settle on a framework until next year. There's just too many kind of sensitivities across the board on kind of the fractious side of this debate. Finally, if you're talking about kind of the optimism in the Netherlands, it's just we don't know where this debate's gonna conclude.

how much more the market will tighten. My view of the Netherlands is that I think the Dutch government have only ever wanted a market of four, maximum five competitors in there. I don't think they've ever taken kind of a liberal element and wanted to see as many licenses as there is right now. That's where I kind of see the Dutch market heading to.

Charlie Horner (19:14.478)
Mm-hmm. So consolidation on the way, perhaps. we will wait and see what happens in the in the Netherlands and we'll continue to report on on all things Netherlands on SBC News and iGamingExpert and we'll bring you all the latest on iGaming Daily, but for now, Ted, Christian, thanks ever so much for coming on and sharing your expertise and opinions here. Thanks to Optimove for supporting the show as always, and to our listeners, thanks ever so much for tuning in to today's episode of iGaming Daily and come back tomorrow to keep up to date with all the latest.

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