Peter-Paul de Goeij is the director of Netherlands Online Gambling Association. He expects Kansspelautoriteit to respond “rigorously” after research showed that illegal operators were allowing minors gamble.
Keurmerk Responsible Affiliates’ (KVA), in collaboration with NOGA, and the operator association Licensed Dutch Gaming Providers’ (VNLOK), conducted a study that revealed minors from The Netherlands could gamble online with offshore operators. KSA has been informed of the findings.
Researchers found that offshore operators did not require age verification for minors, and an email or phone number was sufficient to open an online account.
The research found that those under the age of legal gambling (18) could deposit and play. The research also found that deposits could be made anonymously with cryptocurrency after a quick Google search.
This study identified illegal casinos that used logos from banks and other legal operators in order to convince minors they were safe.
KVA cited a previous study, done in 2023. It showed that illegal sites targeted players who wanted to avoid Cruks (the Netherlands’ self exclusion scheme).
De Goeij, in response to this new research, highlighted the dangers of underage gambling. He believes that minors are at greater risk for addiction, and the resulting consequences, such as mental problems or financial implications.
De Goeij wants to see an exhaustive KSA response that will address this issue properly and fulfill its mandate to protect consumers.
De Goeij, iGB’s De Goeij reported that the Dutch Gambling Authority (KSA) is expected to deal with these problems firmly. The KSA will likely intensify monitoring and enforcement against non-licensed operators. They may impose hefty fines or block access to their websites.
It is important to educate the public about unlicensed gaming, and especially the parents of minors, and the best ways to avoid them.
What is the NOGA’s response to KSA?
De Goeij thinks the KSA could increase collaboration by sharing best practices and intelligence with other jurisdictions to combat illegal operators.
De Goeij also wants the KSA working with financial institutions in order to stop illegal transactions, cut off revenue streams for offshore operators, and enhance their technological efforts.
De Goeij said that the KSA must use advanced technology, such as geolocation blockade and AI-driven surveillance to identify and stop access to gambling sites offshore.
Working with Internet Service Providers (ISPs), to block gambling websites that are not licensed, could reduce the access.
The black market in the Netherlands is growing
KVA’s research is a response to industry concerns about the increasing regulations in The Netherlands, and their potential impact on the black market.
A coalition agreement last week proposed a hike in the gaming tax from 30.5% to 37.8%. This would result in an extra EUR202m ($219.6m/PS173.3m) for the state Treasury. NOGA expressed its concern that these changes could push operators to the black market.
This tax increase follows the vote by the House of Representatives earlier in this year to ban gambling with “high risk”, including online slot machines. The Netherlands Minister for Legal Protection Franc Weerwind is now reviewing the proposed law and will make a final decision.
House also passed a bill to prohibit online gambling advertisements. Untargeted ads were already prohibited by law in 2023.
De Goeij, who is worried about the current situation in The Netherlands, believes that higher taxes and restrictions to advertising will increase the popularity of the black market.
De Geoij added, “The Dutch Government and Legal Operators could experience a drop in revenues that would undermine the regulatory structure and the financial stability of legal market.”
As players migrate to non-licensed platforms, they forfeit the protections provided by licensed platforms. This increases the risk of fraud, addiction, and other harms.
NOGA Recommendations
De Geoij suggested ways that the KSA could work with the government to develop a plan of action against the rise in the black market.
De Goeij wants to see a regulation that is based on facts and attractive enough for operators and players to stay on the legal market. He believes that this can be achieved by making sure restrictions don’t “overburden” legal operators.
De Geoij stated that “the KSA and government should promote innovation and better experiences for customers in the legal markets to attract and retain players.” They should be constantly researching the market and players’ behaviours to adjust regulations and strategies.
Only by adopting a balanced and proactive approach can the Netherlands protect their citizens and maintain a vibrant and attractive gambling market.
KSA response
KSA responded to iGB by saying that the findings of the KVA study matched their own research on illegal offers and lacks required ID verification. It also highlighted the limitations in shutting down websites offshore.
A KSA spokesperson said to iGB that the KSA was “of course horrified” by the findings of the study. In our investigations of illegal offerings, we frequently draw the same conclusion when it comes down to lack identification.
We have several options to impose sanctions against illegal offerings, but due to the legal limitations, we cannot take down illegal sites. This issue is being discussed with the Ministry in relation to the assessment of the Online Gambling Act.”
KSA responded to the concerns about how increased regulation affects the popularity of black markets, saying it is aware of this situation both in The Netherlands and overseas.
KSA said that “internationally we have seen stronger regulation on the legal market lead to lower channels.” The KSA will therefore keep an eye on channelisation rates and is opposed to a complete advertising ban.
