Dutch regulator warns prospective licensees over substandard customer data reporting

Netherlands Gambling Authority (KSA) chief René Jansen has revealed prospective licensees’ failure to develop customer databases has seen the application process grind to the halt.

As part of the requirements for acquiring a licence in the market, operators must have a fully operational control database which records near-real-time data of its customers.

The data must be stored in a separate computer system, with the KSA granted access to the system to check whether operators are compliant with regulations.

Since the Dutch online market regulated in October 2021, the KSA has granted 24 licences.

At the time of writing, 21 of those licences are actively used by operators.

There remains 13 licence applications still to be approved, with Jansen noting the shortcomings in developing adequate databases as the core reason behind the delays.

Jansen said: “What I did not foresee last year was that the KSA would still be assessing 13 licence applications. It takes a long time and requires a lot of capacity. We see many permit applicants struggling to get their control database in order.

“It has even proved to be a show-stopper in a number of cases. In those cases, providers were clearly not well enough prepared for the requirements imposed on a permit,” he added.

Jansen also confirmed that several applications were withdrawn or rejected in line with the KSA’s reliability assessment based on background checks.

The chair revealed that the success rate for licence applications in the market stands at just 33% and further highlighted that the KSA’s high standards were key to having a successful market.

“Looking back, we have seen that the bar is set high, so that only one in three applications have so far resulted in a permit. I believe that setting these high standards is an important condition for a permanently reliable and safe online gambling offer,” Jansen added.