Dutch Gambling Authority declares skins betting illegal
KSA clamps down on wagering in-game items, but Dutch stakeholders call for regulated eSports betting
The Dutch Gambling Authority (KSA) has followed Great Britain’s Gambling Commission in declaring skins betting illegal.
The KSA yesterday published a Q&A where it stated it was not possible to apply for a skin betting licence in the Netherlands and therefore the activity was prohibited, even if no money changes hands.
The regulator also admitted it had a lack of information on the subject, and asked consumers to report skins gambling providers.
The move follows a similar announcement last week by the GB Gambling Commission, which admitted it was “concerned” by the prevalence of skins betting.
Fintan Costello, founder and managing partner at Amsterdam-based Revenue Engineers, told EGR the KSA had “no choice” but to clamp down on the activity
“These in-game items have very large real money value and can effectively be cashed-out, we see this as a situation where the regulator has no choice to make very clear to game providers what is and is not allowed,” Costello said.
“There is a very large difference between skin gambling (betting in game items) and eSports betting (wagers on sporting events). eSports betting as the industry knows it is betting on which of two teams will win a contest and we believe would be covered under the current proposed legislation so see no impact.”
It is still unclear whether eSports gambling will be included in the Netherlands Remote Gambling framework, which is expected to be introduced in 2017.
Dutch gaming lawyer Frank Tolboom added: “The ministry would like to regulate products for which there is a clear demand in the Netherlands.
“Currently they are focusing on the typical gambling products, but they are still working on secondary regulations which ultimately determine licensable product categories. No public statements have been made on eSports betting.
“In my view, if betting on sports is allowed, then eSports betting could be covered by a sport betting licence.”
Regulated eSports betting is booming, with Pinnacle recently claiming it was its fastest growing sport.