The Netherlands Gambling Authority (KSA) recently introduced the Regulator 2.0 framework, providing greater support for gambling operations. However, it has warned gaming sites to abide by established advertising protocols or face a complete ban on gambling promotion.
Key Notes of the Story
- The KSA, in an effort to move away from its image of being an “unreachable, rigid operator,” plans to move toward an open and flexible organisational structure to address the industry’s most pressing challenges.
- The regulator plans to enforce strict measures to rein in illicit gambling operations. It is contemplating a total ban on gambling advertisements to prevent players from signing up at unlicensed gambling sites.
- Dutch trade body VNLOK urged banks and tech firms to coordinate with the KSA to help prevent unlawful gambling.
Need for Stricter Reforms
Renske Fikkers, head of KSA’s market supervision, made a public announcement at the Gaming in Holland (GiH) conference on June 5. In her speech at the event, which Dutch iGaming industry figures took as an opportunity to challenge the issues faced by the sector, Fikkers explained that the sector has not lived up to initial projections, prompting lawmakers to enforce stricter measures. Fikkers stated:
Operating legally needs to be profitable. However, lawmakers are increasingly backing out of their promises, partly because of misadventure in the gambling industry.
The backtracking, according to Fikkers, stems from serious concerns about consumer safety and responsible gambling. She stated the example of the KSA’s first-ever duty-of-care penalty, where an operator was fined €734,000 for allowing young adults to gamble away tens of thousands of Euros, without intervening. “The complete lack of consideration for consumer safety goes against the legislation, which is why reforms are necessary,” she explained.
Discussing the Regulator 2.0 framework, Fikkers said it would help the KSA adopt a flexible and open organisational structure and address the industry’s most pressing challenges. Fikkers went on to add:
We understand that regulations sometimes must be flexible to accommodate diverse operational needs. Furthermore, post-implementation, there may be obstacles or uncertainties that we could not have anticipated in advance.
Advertisement Ban is the Most Realistic Option
Advertisement violations rank high in the KSA’s list of concerns. Fikkers warned of tighter regulatory enforcement on ad campaigns to rein in illicit gambling operators. She said:
I still see far too many instances of open violation of existing ad legislations. The widespread protests over flouting make a blanket ban on ad campaigns extremely necessary, even though the KSA is not inclined toward any drastic action.
Fikkers’ statement regarding the KSA’s views on a blanket ad ban reflects that of Michel Groothuizen, KSA’s chairman, who had made a statement in July 2024 emphasising the need for visibility to keep the licensed market attractive and competitive. Fikkers took the diplomatic route, balancing praise and criticism when discussing developments. She said the regulator has been in discussions with operators to ensure legislation is being upheld.
Despite its tough stance, the KSA is making progress toward becoming a reachable and transparent regulator. Fikkers emphasises:
We want to grow out of our image as an unreachable and rigid gambling authority focused solely on fines and penalties. We want to evolve into an open and flexible authority and find creative solutions to difficult problems.
The KSA’s new regulatory framework, dubbed Regulator 2.0, relies on greater engagement within the industry. The regulator plans to use immediate feedback loops and direct roundtables to address compliance issues more effectively. While the regulations are getting stricter by the day, Fikkers has left some room for operators who go above and beyond for consumer safety—unlike the blanket ban recently enacted in Brazil, which prohibits all sports betting advertisements to protect vulnerable groups, marking a different approach for now.
“If we see operators following best practices, we will mention them in our reports. But right now, there is ample room for improvement, forcing our hand into taking drastic steps,” Fikkers evaluated. Dutch trade body VNLOK also called for greater cooperation between tech firms and financial providers to combat illicit gambling at the GiH conference. Björn Fuchs, VNLOK Chair, said:
Tightening digital security is more than new legislation and enforcement. It’s high time that banks, financial providers, and tech giants like Meta and Google step up their game and stop facilitating illicit gambling operations. These tech giants must surely have the knowledge and resources to identify and block illegal gambling businesses.