Dutch gambling regulator Kansspelautoriteit (KSA) has issued warnings to three operators for breaching rules on advertising by sponsoring sports events and related clothing.
KSA did not disclose the identities of the operators involved in the breaches. However, the Dutch regulator said each provider had been reprimanded for breaking sponsorship rules in the country.
This comes as part of the Netherlands’ ban on ‘untargeted’ gambling ads last year, effective 1 July. While this is not an outright prohibition on gambling advertising, it bans ads on television, in radio and in print, as well as advertising in public places.
Sports sponsorship is now the only form of commercial agreement still permitted in the Netherlands. Since 1 July this year, sponsoring television programmes and events has been prohibited, per rules set out last year.
Within this same rule set is an outright ban on sponsoring sports venues and clubs, although this will not come into effect until 1 July 2025. Deals are permitted until this date but must conclude before the ban commences. Operators were asked in March to provide details of any sponsorship agreements to the KSA ahead of the ban.
As for the three operators that breached the relatively new rules, KSA set out some details of each case.
In the first instance, the operator previously had a sponsorship contract with an organiser of a national event. While this had expired ahead of July this year – when the new rules came into effect – the organisation continued to use promotional materials bearing the operator’s name.
KSA said the operator immediately had its logo removed from promotional materials after the regulator issued its warning.
Another provider encountered issues with agreements with a third party in relation to its sponsorship of a major sporting event. In the run-up to the tournament, children and young adults played sports at the location where the event took place. This meant branding for the operator was visible outside matches, to a vulnerable target group.
KSA again reiterated that the operator is responsible for the sponsorship messages and their visibility. Therefore, it should have been alert to the fact branding was also visible outside the actual tournament.
Finally, a third operator was flagged for an incident with an online sports shop. Here, t-shirts of a famous athlete were being sold, featuring the operator’s branding as a shirt sponsor. The shirts were available to purchase in children’s size.
In its assessment, KSA ruled advertising was being aimed at a vulnerable target group, which is not permitted. The operator immediately took action to ensure the children’s sizes no longer featured its logo.
Regulator warns of enforcement action
KSA took the opportunity to issue a reminder to the wider market about the new rules for sponsorship in sport. This is particularly important given the impending outright ban on deals within the sector from next July.
“In sports sponsorship, providers may not target vulnerable groups, including minors and young adults. It is the responsibility of the gaming provider to adhere to these rules at all times, even if third parties are involved in the sponsorship,” KSA said. “We have seen this go wrong several times.
“In these three cases, KSA once again explained the rules regarding sponsorship to providers. In the event of a subsequent violation, KSA may take enforcement action.
“It is up to the provider to make clear agreements with external parties. This includes the use of sponsor materials, the time at which sponsor messages are shown, and the way in which they are distributed. In addition, it is up to the provider to ensure external parties adhere to these agreements.”
