The Dutch are known for their liberal stance when it comes to many things: raising their kids, marriage rights, and even sex work. However, when it comes to gambling, the Dutch are actually quite conservative. At least, that was until 2021.
Before we get into it, it’s important to understand the history of gambling in the Netherlands.
In 1964, the Dutch took the step to legalise casinos and gambling establishments in the Netherlands — but what happens when the future comes knocking, and online casino sites are born?
Well, for a while, a whole lot of niets (nothing). Online casino sites were simply not in the old legislation, meaning the Dutch government considered them to be illegal. This meant you could walk into a casino and take part with no worries. However, online casinos were a big no-no.
This all changed in 2021 when the Dutch government finally created an online gambling licensing system. Put simply, this means that licensed online gambling sites can welcome Dutch players.
So, how’s it going for online casino sites and their new Dutch players?
That’s a good question! However, we’re not the experts here, so we decided to sit down and speak with the online casino expert, Harrison Newton, editor-in-chief at bestcasinosites.net. Here’s what he had to say:
“There is no doubt that the market is growing rapidly and has lots of potential. The Dutch Ministry is aiming at moving players from illegal to the legal offer, which I believe we are achieving — so yes, we are definitely on the right track”, Harrison says.
To give you a better picture of what the current casino market in the Netherlands looks like, we asked Harrison Newton a few questions.
1. How many online casino operators have licences so far, and what criteria should they meet in order to qualify for an online licence?
In 2021, the Dutch government released a total of 90 online gambling licenses for online casinos. Currently, however, there are a total of 24 Dutch online casino operators with licences so far.
In order to actually receive these licenses, they must meet a number of criteria:
- Providers must monitor people’s gaming behaviour
- They must take measures when someone shows problematic gaming behaviour
- Problematic players must have their names placed in a central register
- They are not allowed to advertise to those younger than 24
- Sites must receive advice from addiction experts to know when a player must be stopped.
2. Looking back to 2022, how would you evaluate this first full calendar year in which online games of chance were legally offered in the Netherlands? Can we say that the gambling market is stable already?
Not quite, the market has had to endure some growing pains in order to establish itself.
This is due to a number of factors, such as arranging to meet the requirements put in place by the Dutch government. Seeing as these requirements are so strict, many businesses, especially the smaller ones, need time to gather the resources to meet these requirements.
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Others have met the requirements but have been hit with a penalty for taking on Dutch players while online casino sites were still illegal in the Netherlands. As a result, they’ve had to sit on the penalty bench and wait longer to enter the market.
”At the beginning of March, KSA (kansspelautoriteit) imposed over €26 million in fines on five operators after ruling they offered online gambling in the Netherlands without a license. The strict rules and regulations must be followed if we want the market to become stable, so there are still things which need to be improved”, says Harrison.
It’s safe to say the gambling market is currently in its adolescence, it needs to grow a bit bigger and learn the rules — but it’s certainly moving in the right direction!
3. What are the market’s pain points, and what could be considered an obstacle for the market?
The main pain point so far seems to be the past. Namely, the fact that it’s coming back to bite many online casino sites that were hoping to get a Dutch licence as soon as the legislation was brought in.
At the beginning of the new legislation, many potential online gambling sites were put on the penalty bench.
Why? They had been illegally allowing Dutch players to take part in online gambling — without a licence.
As addressed above, sites that were slapped on the wrist by the Dutch government had to wait longer in order to receive their licences. As a result, growth in the Dutch online casino market was slowed down at the beginning of the new legislation.
It is exactly this strictness that may actually be a big obstacle for the Dutch online gambling market. With so many strict requirements, sites that do not have the resources, for example, to receive training from addiction experts, will not qualify for a licence.
As a result, the market may only consist of the larger companies, meaning less competition, and fewer options for players.
“However, on a positive note, that would ensure that only legal operators would be allowed to operate, meaning that Dutch players will be protected, and this will serve to create a very safe environment — which is our initial goal”, points out Harrison.
4. Regulated vs unregulated casino sites – what advice would you give to Dutch players when it comes to choosing the best casino site and what are the important safety factors to look out for?
Firstly, you need to determine which casino sites are actually legal for Dutch players. You can find this list on the Dutch governmental website.
Secondly, you need to make sure you’re not about to get yourself caught in a trap. Before signing on to any online gambling site, you need to make sure it’s as easy to cancel your subscription as it was to sign up for one!
Finding it hard to see that unsubscribe button? Look up reviews, have other players faced this struggle? Yes? Then stay away.
Our main piece of advice? Stick to the government’s list of legal, licenced online casino sites. These sites had to pass through a number of hurdles and prove that they are a safe space for players in order to receive their licences.
This means that they’re the safest sites out there — and also the best.
“In a survey released this year, KSA reported that eight out of ten players are now gambling with legal operators”
5. How is the Dutch online gambling industry performing so far compared to other European markets?
As of September 2022, the Dutch online gambling industry has been performing surprisingly well. In the first half of 2022, the Dutch are believed to have gambled away a casual half a billion euros.
In addition to these figures are the number of users. According to the Gaming Authority, 10% of Dutch people who are online make use of online casinos.
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So, how do these figures fair in comparison to other European markets?
”Prior to the regulation, the Dutch market was believed to become one of Europe’s largest gambling industries. Since many people were already gambling online illegally using VPNs, operators had little risk and optimum reward when entering this market,” he explains.
“And so far, the country has exceeded its three-year channelisation target within the first 12 months.”
6. How do you predict the future of the market, and are there any new opportunities ahead?
“Despite the fact that the market is developing rapidly, we are far from done. There are already some strict changes implemented in the advertising policy of the market.
The expectation is that the KSA will always respond to new trends and developments and try to implement them so that players are protected. There are still discussions within the Dutch ministry on what the new advertising ban could mean to affiliate sites — this is yet to be clarified,” Harrison tells us.
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“Because of the strict Dutch approach to gambling regulation, a two-strikes-you-are-out model has been proposed, which would result in operator licenses being suspended after two violations. It was argued, however, that such harsh punishment would not make licensees less unruly.”
According to the Ministry itself, overregulation can cause more harm than good as it can negatively impact the relationship between regulators and operators, and can actually push players towards the black market.
Moral of the story? Things started out well in the full calendar year when online casino sites were legalised in the Netherlands. Are there growing pains? Sure! But the Dutch are rolling with it.
What do you think of this change in legislation? Tell us your thoughts in the comments below!
