Dutch regulator opens up online lottery market

The Dutch Gaming Authority (KSA) is to open up Netherlands’ online lottery market to non-incumbents for the first time after agreeing to process the licence application of Lottovate.

The regulator’s decision follows a landmark ruling by the Court of Amsterdam last month which said there was just no justification for limiting the amount of charity lottery licences to a certain number, which currently stands at four.

Lottovate, a brand operated by UK-headquartered company Zeal Network, had previously been prevented from obtaining a licence by KSA, although the regulator said yesterday it would comply with the court’s recent ruling and not appeal the decision.

Once its new licence is granted, Lottovate will be able to operate in the market until 31 December 2016 when all existing licence holders will have to apply for a new licence.

However, Justin Franssen, of leading Dutch law firm Kalff Katz & Franssen, told EGR the lack of precedent made it difficult to predict how long the initial licensing process would last.

“It’s difficult to say how long it will take to get a licence and it depends on how long it takes Lottovate to process what the Gaming Authority is actually asking for,” he said.

“This is a new process and there is no standard application form. It could move relatively quickly, provided they submit everything in time, and the Gaming Authority is fast.

“Then it could be as little as six weeks but I think it will probably take more time than that,” Franssen added.

Under its Dutch lottery licence, Lottovate will also be required to contribute 50% of stakes from games of chance to charitable causes.