Operators caught unawares by Dutch gambling app crackdown

Dutch gaming authority asks operators and app stores to remove gambling apps from Dutch sites

European operators were caught by surprise this week after the Dutch gaming authority announced plans to clamp down on mobile gambling apps.

The Kansspelautoriteit (KSA) issued a press release on Wednesday warning operators and app store providers to ensure their gambling apps are not accessible to Dutch consumers.

However, the extent and speed with which all operators comply remains to be seen according to Netherlands-based gaming lawyer Alan Littler, who said that operators were somewhat blindsided by the crackdown.

“I’ve spoken to multiple firms who are completely surprised by this,” said Littler. “There was no prelude, no warning and nothing to suggest that this action was imminent.

“I’m not sure what the level of compliance may be. It’s too early to say exactly how the market will react but I suspect those interested in licensing in the future will comply.”

Companies which break Duth gambling laws can be fined up to €810,000, or 10% of their annual profit, and it is thought it would harm operators looking to gain a licence when the market re-regulates in 2017.

The KSA said it was cracking down on apps because of links between mobile gaming and problem gambling.

“It now appears that the use of apps for gaming sharply increases at the expense of playing through a PC or laptop. Players can use apps on mobile devices 24 hours a day anywhere. The combination of the low threshold of apps and the greater risk to young people are reasons to take concrete steps in the coming months,” the KSA statement said.

Until now, the regulator has focused its enforcement efforts against unlicensed offers on websites which do not comply with the prioritisation criteria. Operators cannot have a .nl website, use Dutch language on the site or advertise via print, TV or radio.

Operators which do not breach these rules are largely left alone as the re-regulation process is ongoing. The official target for licensing to begin is July 2017, with the process itself then expected to take four to six months.

However the gaming bill was scheduled to appear in the lower house of Dutch parliament next week, but was surprisingly bumped from the schedule.

“It’s not clear whether that’s a result of successful lobbying or just a busy schedule,” said Littler. “But either way it’s not a good thing.”