Exclusive: Holland Casino issues RFP for online services

Holland Casino has taken its first step towards launching an egaming offering by issuing an RFP for online services, and with only a 10-day window in which to submit applications, the move is set to spark a frenetic bidding war as suppliers compete to gain a dominant position in the soon-to-be-regulated Dutch market.

The tender document seen by eGaming Review sets out the monopoly operator’s plans to launch a freeplay online casino, bingo and poker offering by the end of 2013 and real-money versions as soon as it is legally able to do so.

The Dutch government recently announced plans to regulate online gambling in the jurisdiction and is expected to introduce a draft framework for consultation in April with a finalised law approved in parliament by the end of the year. It is expected that the market will be fully operational by 2015.

The document states that Holland Casino, which will be sold by the government as part of its privatisation plans, will enter into a contract with a single partner for all online services.

These include a backend portal, gaming management platform, a portfolio of slots and table games, a bingo and poker platform and network, and a live dealer solution. Initial applications must be submitted by 25 February while the final award date is set for 29 June.

Winning the service provider contract for the country’s sole casino operator would represent a huge opportunity given its monopolistic position and brand recognition in the marketplace and is likely to start an aggressive tender process involving the likes of GTECH, Playtech and Amaya.

In an article in the forthcoming March issue of eGR data partners H2 Gambling Capital estimate that annual gross win from a regulated Dutch interactive market, based on its current land based gaming tax rate of 29%, would reach €177m by 2016. However, if a 15% gross win interactive gambling tax was implemented ““ as many expect it will be ““ H2 expects the dot.nl market gross win to reach €261m by 2016.

Holland Casino manages 14 properties across the country and boasts an annual turnover that exceeds €500m. Should it fail to obtain a real-money licence for online casino, bingo and poker before 31 December 2015 due to political changes or a delay in the licensing system, however, it has the right to end the contract.

Willem van Oort, CEO at egaming marketing specialist Gran Via Online, told eGR: “This looks like a once in a lifetime opportunity for service providers to obtain a dominant position in the Dutch market. Despite the government’s plans to sell the business, [preparing for online regulation] is something Holland Casino has to do as the privatisation process could take years.”

The Netherland’s coalition government confirmed plans to begin issuing egaming licences before the end of its current term in October, with leaders Mark Rutte and Diederik Samson claiming a tax rate of 29% of GPT would raise €31m a year as part of wide-ranging anti-austerity measures in the European Union member state.

Last month the Dutch gaming regulator met representatives from almost all of Europe’s largest operators in order to discuss key the issues surrounding online gaming regulation, setting out plans for further consultation in April and a timeline to finalise its egaming laws by the end of this year.

Among the matters discussed were responsible gambling and player protection, the need for ongoing industry consultation, the role of software companies and white label products, money laundering and fraud, levels of privacy such as data and information sharing, with the regulator seemingly not keen to follow the Spanish and Danish strategy of linking ID documentation to players’ accounts. Under the Netherland’s comparatively liberal privacy laws it would be unable to enforce such strict identification measures.

Taxation models, however, were not discussed as this responsibility lies with the Ministry of Finance, which was not present at the meeting.