During the recent SBC Summit, Justin Franssen, a partner at Franssen Tolboom Attorneys at Law, criticized the Dutch gambling regulator for failing to act against Meta and other platforms that advertise illegal gambling. "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," he stated during a panel discussing the challenges facing Dutch gambling regulation.
Franssen highlighted a change in Dutch gambling law that now prohibits not only the advertising of illegal gambling but also the facilitation of such activities. He asserted, "What Meta and others are doing is pure facilitation. Why are they not stepping up?"
He pointed out that the enforcement of regulations has now fallen to the industry itself. The Dutch online gambling trade association VNLOK has taken legal action against Meta, while Nederlandse Loterij has pursued civil cases against unlicensed platforms, winning a case against Lalabet in June.
Franssen expressed further frustration over a parliamentary motion discussed on Tuesday, which suggested the Dutch Gambling Authority (KSA) could intervene if Meta ignores removal requests. "Well, it already can. It just isn’t doing so," he remarked.
VNLOK's chairman, Björn Fuchs, also criticized the regulator's approach. He found it astonishing that the gambling authority would prefer to engage in dialogue with Meta, as reported in a national newspaper, rather than take decisive action. Fuchs noted, "We’ve seen the last five years; it doesn’t add up."
After the panel, Fuchs explained to iGB that VNLOK opted for legal recourse after attempts to communicate with Meta resulted in automated replies. The association is petitioning a Dutch court to ensure Meta fulfills its obligations under the EU Digital Services Act (DSA). "We feel confident," Fuchs declared, emphasizing a shift in public perception against Meta, referencing recent charges in the US claiming the company is addiction-prone.
He cited cases in France and Germany where civil courts have held Meta accountable for illegal gambling ads and anticipated that the company might attempt to transfer its case to Dublin, where its European operations are located. Fuchs commented, "Politics and legislation always lag behind reality, typically by about three years," an issue exacerbated by the rise of AI-generated ads and bot accounts.
A study from the Netherlands revealed the advancements of AI in this context, finding that ten leading AI assistants, including Meta AI, named at least one unlicensed operator, with some suggesting they were licensed. Fuchs believes legislative changes are on the horizon, quoting, "And with the DSA in place, I believe the European courts are also moving in that direction."
In June, when VNLOK initiated its legal actions, it also filed an official complaint with the European Commission. Fuchs confirmed that discussions are ongoing with various European agencies, although he could not provide specifics. He likened offshore operators with licenses to being on "a small island," using tactics akin to criminal organizations to infiltrate strictly regulated markets.
He stressed the importance of collaboration among gambling authorities across Europe, stating, "So let’s first make sure the gambling authorities in all our countries join forces and identify the common problems and common denominators."
VNLOK is sharing insights with trade groups in Denmark, Sweden, Germany, the UK, France, and Spain. Fuchs lamented that regulators are lagging behind developments in the industry, advocating for a more robust response from regulatory bodies to address the challenges presented by Meta and similar entities. He concluded, "I am confident that they are piling up evidence and insight at European level, and that they will start moving," hoping for a significant increase in action on gambling-related issues in the near future.
The legal summons against Meta was submitted to the Amsterdam District Court, but no hearing date has been announced, and potential disputes over jurisdiction might hinder the process.
