Inside the Netherlands’ compliance mindset
Mike De Graaff, head of regulatory services for Diligence in Gaming – a ComplianceOne Group company, takes a deep dive into the Dutch gambling regulator’s study on RG practices
The Dutch Gaming Authority (KSA) recently provided an update on its ongoing investigation into the way operators are putting a duty of care into practice in regard to gambling addiction.
We will have to wait until later in the year for the full conclusion, with the KSA saying the investigation had given rise to new questions that needed further consideration. But initial comments from the regulator do give us a clear indication of the likely direction of travel.
The KSA notes that so far, operators have shaped their approach to their duty of care in very different ways, admitting that this is likely the consequence of a lack of clear prescription. However, it also stressed that within these variable approaches, it saw too many excesses and interpretations among licensed operators. Anticipating what comes next will not be easy, but it’s clear that anyone active – or planning to become active – in the Netherlands, needs to be paying attention.
Having worked with many licensed operators in the Netherlands since the framework went live in October 2021, the message I most often repeat is a simple one: treating regulation as a box-ticking exercise simply won’t cut it.
Understanding the KSA
Let me take you through two examples that show ‘interpretation is everything’ when it comes to keeping onside with the KSA.
One interesting requirement from the regulator is to work alongside the healthcare sector to ensure you provide a duty of care to customers. Of course, this is easier said than done. Addiction care experts are not always willing to cooperate directly with gambling operators.
For those that do find a solution, a signed declaration proving the cooperation won’t be enough. Instead, the operator needs to prove that the expert’s input has been used to inform and educate, and that meaningful practices and procedures have been adapted in light of that advice. All this needs to be measured and monitored, so the operator can demonstrate it truly understands the positive impact the cooperation is having.
Another requirement sees the KSA demand the use of scientific data to perform sound analysis on product risk. Again, this requires active collaboration with recognised experts; as applying a generic approach will not be deemed satisfactory. We’ve heard stories of full reports using the ASTERIG method to show risk classified as low to medium being swiftly returned to operators, with little comment other than the suggestion they dig deeper. Finding partners with the right scientific and academic knowledge is now essential.
What comes next?
It is clear that if you want to run a sustainable gaming business in the Netherlands, you need to understand not just direct requirements but also the spirit of the regulation, and act accordingly. The KSA has not been shy in expressing its frustration at certain operators, nor is it afraid to use licence warnings, rejections and other sanctions. But this isn’t all bad news, and it’s certainly fixable, particularly for those who are investing in developing a true understanding of the expectations.
For me, it is about building a true compliance culture mindset. On a daily basis, I’m collaborating with a wide range of experts and tracking updates from the KSA to help operators find the right path forward. There is no one-size-fits-all answer here; operators must remain flexible and approach these challenges with an open mind and genuine willingness to find answers.
Remember, commercial and compliance cannot be considered separate concepts in the Netherlands (or a growing number of gaming jurisdictions which are taking a similar approach). A compliant business is a prerequisite for sustainability, longevity and, ultimately, commercial success.
No operator in the Netherlands wants its licence rejected or revoked; and we’re increasingly finding that going the extra mile to truly get into the mind of the KSA is now the only way to guarantee it won’t happen.
Mike De Graaff is head of regulatory services for Diligence in Gaming – a ComplianceOne Group company, where he assists B2B and B2C companies in all regulatory compliance matters. He has previously held senior risk and compliance roles at the likes of Betclic Group and ComeOn.