During the SBC Summit on Wednesday, Justin Franssen, a partner at Franssen Tolboom Attorneys at Law, criticized the Dutch gambling regulator for not taking action against Meta and other platforms that host illegal gambling advertisements. He expressed his disbelief that an organization, funded significantly by operators, claims to lack sufficient enforcement powers. "To me it’s absolutely incomprehensible that we have a regulator that is paid a serious amount of money by the operators and continues to complain that it doesn’t have enough enforcement capabilities," Franssen stated during the panel discussion entitled "The Dutch Dilemma: Deposit Caps, Ad Bans and the Black-Market Boom."
Franssen highlighted a specific provision in Dutch gambling law, which was initially enacted to prohibit advertising of illegal gambling but has since been expanded to include the facilitation of such activities. He argued, "To me, what Meta and others are doing is pure facilitation. Why are they not stepping up?"
Franssen pointed out that the industry has resorted to self-enforcement, noting that VNLOK, the Dutch online gambling trade association, has filed a lawsuit against Meta. Additionally, Nederlandse Loterij has taken civil action against two illegal sites, Lalabet and Qbet, winning its case against Lalabet back in June.
He was also critical of a recent parliamentary motion suggesting that the KSA should have authority to act if Meta does not comply with demands to remove its advertisements. "Well, it already can. It just isn’t doing so," he remarked.
VNLOK’s chairman, Björn Fuchs, echoed this frustration. He found it shocking that the gambling authority would prefer to engage in dialogue and cooperation with Meta, claiming, "We’ve seen the last five years; it doesn’t add up."
After the panel, Fuchs explained that VNLOK pursued legal action after receiving only automated responses from Meta during their attempts to communicate. The association is asking a Dutch court to compel Meta to comply with its responsibilities under the EU Digital Services Act (DSA).
Fuchs expressed optimism regarding their case. He noted a shift in public perception towards the tech giant, citing recent U.S. charges against Meta for addictive practices. He referenced legal precedents in France and Germany that have held Meta accountable for illegal gambling advertisements, and also anticipated that Meta may attempt to move their case to Dublin, home of its EU operations.
He stated, "Politics and legislation always lag behind reality, typically by about three years," noting that the prevalence of AI-generated ads and bot accounts only contributes to this lag.
A Dutch study released this week revealed the extent of AI's involvement in this domain. Out of ten leading AI assistants tested, all identified at least one unlicensed gambling operator, with three suggesting that illegal sites were actually legal. Microsoft Copilot produced a list titled “Top 50 legal casinos,” including unlicensed brands and implying they were KSA-licensed.
Nonetheless, Fuchs believes momentum is shifting, asserting, "And with the DSA in place, I believe the European courts are also moving in that direction."
As VNLOK initiated its legal proceedings in June, they lodged a formal complaint with the European Commission, with Fuchs mentioning ongoing discussions with various European agencies but refraining from disclosing details.
He characterized offshore operators with licenses as operating from "a small island," indicating that they employ misleading ads to target regulated markets, akin to a criminal organization. Fuchs proposed that Interpol might eventually need to be involved, although he noted that the bar for this is high. "So let’s first make sure the gambling authorities in all our countries join forces and identify the common problems and common denominators," he added.
Fuchs shared that VNLOK exchanges information with trade groups in Denmark, Sweden, Germany, the UK, France, and Spain. He emphasized that regulators need to catch up, asserting, "At gambling-authority level, it should be much higher. Meta is a European problem."
"I am confident that they are piling up evidence and insight at European level, and that they will start moving. But for gambling, that should ramp up in the near future," he concluded.
The lawsuit against Meta has been filed at the Amsterdam District Court, though no hearing date has been set, and early jurisdictional disputes could delay proceedings.
