Dutch regulator announces new crackdown on online operators
Operators face stricter enforcement action if they are not geo-blocking Dutch customers by 1 June
The Netherlands Gaming Authority (KSA) has announced plans to update its enforcement policy as part of a surprise crackdown on online gambling operators serving Dutch customers.
Under its existing policy, the country’s ban on online gambling was only actively enforced on operators which offered services on a Dutch-language website, had a site with a .nl extension or advertised on television, radio, or in print.
However the new enforcement policy, announced Saturday, adds several new criteria to this list, and now extends to operators failing to employ geo-blocking to prevent Dutch visitors from accessing its website and operators with a promotional or affiliate site with .nl domain that redirects to a.com site.
It also extends to sites with Dutch-sounding brand names and operators that use typical Dutch payment methods such as iDEAL.
The new enforcement regime will come into force on 1 June.
Dutch industry insiders told EGR Intel they were still scrambling to understand the situation, but suspected political pressure had prompted the move.
Another source said the changes could lead to legal battles as operators challenge whether they are in line with European law.
One operator, speaking on the condition of anonymity said: “We intend to get licensed at some point so it is not in our interest to provoke the market or the regulator for that matter.
“We are however completely against its way of conducting restrictions prior to getting regulated and I truly believe the industry should challenge them from a European court of law.”
The changes are expected to have wide-ranging impacts with the geo-blocking at the top of the list. The iDEAL payments system also accounts for 80% of Netherlands payments, while major sites like Betsson’s Oranje Casino could also face enforcement action.
Previous enforcement action handed down by the KSA has come in the form of financial penalties, with Tiplix.com hit with a 170,000 fine earlier this year for having a Dutch-language site.
Speel Verantwoord (SSV), the Dutch trade association of online operators, said it was shocked such a range of measures had been introduced on the eve of regulation without any consultation with the industry.
The association warned the measures would undermine the purpose of the pending re-regulation to channel Holland’s one million online gamblers towards safe, regulated sites.
The group added: “The members of SSV look forward to constructive dialogue with the KSA with a view to the common goal of a carefully regulated, attractive market with a high degree of channelisation.”
The Dutch Senate is currently considering the Remote Gambling Bill after it was passed by the lower house of Dutch Parliament last year.