BetEnt, which received a fine of €400,000 for an advertising violation in April, and Play North were those named by the regulator.

This followed a market-wide preliminary study into compliance obligations that was conducted earlier in the past year, following which it was discovered that the two licence holders, who remained unnamed at the time, did not sufficiently control the gaming behaviour of the players. Each was issued with an instruction to get monitoring protocols in order.

First Wwft disclosure instructions 

As a result of the market inquiry, the Ksa noted that research demonstrated that the pair did not sufficiently check the playing behaviour of the players and the origin of the money used, which is mandatory under the Wwft.

At the time, it was said that following a data examination it was found that players, including young adults, were able to lose and top up tens of thousands of euros in a short period of time, without the providers having to intervene or investigate.

Among the discoveries at BetEnt’s BetCity portal were that players lost sums of €110,000, €55,000 €25,000, €25,000 and €12,500 in one month without any source of funds checks being initiated. It was also uncovered that €85,000 was lost in six months and €15,000 in three months, with no investigation.

Similarly, at Play North’s Kansino players lost €135,000 and €20,000 in two months, €12,000 and €15,000 in a week and a half, and €25,000 in two weeks. One individual was also able to deposit approximately €25,000 in one hour without an investigation or alert.

The Ksa also revealed that “despite various alerts going off”, concerning phrasing such as binge gambling, increased spending, chasing losses, deposit frequency, SoF check and increased playing duration, the company failed to intervene.

The authority cited three reasons for making the sanction decision public, with these being as a preventative effect in discouraging others from violating Wwft, allowing these parties to become aware of what could lead to enforcement and permitting the public to become aware of actions being taken and the reasons behind it.

Both parties, which were among the first ten entrants of the country’s legalised online gambling market from midnight on Friday October 1, 2021, lodged objections to the decision.

However, these were rejected due to the seriousness of the violations, degree of culpability and importance of the early termination of the aforementioned core obligations under the Wwft.

“The instructions have now been made public because they have become irrevocable. The disclosure decisions themselves are not made public. These fall under the confidentiality obligation of the Wwft,” the Ksa noted.

Adding: “It is the first time that the Ksa has published instructions in the context of the Wwft.”

Ongoing regulatory action

Through the current month, licensees of the Dutch gaming market have been warned that they must intervene with additional urgency and efficiency when players exhibit behavioural traits that could indicate excessive gaming or a potential addiction. 

Following an “extensive investigation” into the fulfilment of the duty of care at 10 providers, the country’s gambling authority has also informed that it is working towards tightening its own policy based on conclusions and findings.  

This followed the Ksa beginning an inquiry into outlawed cashback bonuses due to concerns that permit holders were not heeding prior warnings.

A recent signal regarding such an offer being on display by a licensed entity was received by the regulator, which subsequently terminated the violation after the authority stepped in.

In November 2022, all licensed providers of online gambling were ordered to stop providing bonuses in the form of cashback.

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Following what is billed as an “extensive investigation” into the fulfilment of the duty of care at 10 providers, the country’s gambling authority, Kansspelautoriteit, has also informed that it is working towards tightening its own policy based on conclusions and findings.  

This will see responsible gambling protocols be amended to include mandatory real-time monitoring and blocking of accounts that display concerning signs until an intervention has taken place.

In addition, supplementing rules on indicators that should be included in the assessment of gaming behaviour will also be included.

“The Ksa puts safe play first. We receive worrying signals and, as a supervisory authority, we investigate providers who may far exceed the limits of their duty of care,” René Jansen, Ksa Chair, commented.

“If we notice this, we will intervene. With this research we see where, outside of these signals, providers are not doing well. 

“Players must be able to assume that they can play safely. We see that rules need to be tightened, precisely to further promote a safe environment for players.”

Key findings

This latest study commenced in June 2022, with the investigation looking into the first 10 licence holders to offer online gambling when the market opened on October 1, 2021.

Headline findings include the aforementioned inability to intervene quickly, which the regulator has put down to “the monitoring methodology used to detect problem players, and the (in)ability to monitor in real time”.

This, it was added, is due to some licensees adopting an overly one-sided focus on the amount of deposits and bets made, with other factors, such as the number of hours played, “given less weight” and meaning that providers can overlook key warning signs.

In addition, it was also found that “young adults are sometimes less noticeable during monitoring” as they do not “reach certain limit values ​​due to set limits”.

This, the Ksa said, means that there are less interventions within the demographic, with a focus on wider factors, beyond size of deposits and bets, recommended once again. 

“Based on the results and conclusions of this study, the Ksa will start tightening its own policy,” the regulator said of the next steps to be taken. 

“The discussions with the permit holders reveal a shared wish to receive more guidance on how to fulfil the duty of care. [The] permit holders also requested a more uniform interpretation or clarification of certain standards, so that a more level playing field is created and they all comply with the same rules. 

“This wish will be taken into account where possible in the Ksa’s next steps. In addition to these follow-up steps, the Ksa has also investigated several signals or indications in its supervisory practice in the area of ​​inadequate compliance with the duty of care by providers.”

Cashback bonus investigation

This follows the Ksa beginning an investigation into outlawed cashback bonuses due to concerns that permit holders were not heeding prior warnings.

A recent signal regarding such an offer being on display by a licensed entity was received by the regulator, which subsequently terminated the violation after the authority stepped in.

In November 2022, all licensed providers of online gambling were ordered to stop providing bonuses in the form of cashback.

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Echoing previous worry expressed in Austria and Germany, a number of Loonstein Advocaten lawyers are appealing for the government to “stand up for the interests of Dutch citizens” and to ensure that Malta “respects the rule of law as laid down in EU treaties”.

Last month, German gambling regulator, Gemeinsamen Glücksspielbehörde der Länder, cast further doubt over the legitimacy of Bill 55 by stating that it does not believe it complies with European law.

This is a viewpoint that has subsequently gained the backing of Loonstein, which stated that “a law like Gaming Bill [55] has no precedent in the EU”. 

Passed by lawmakers of the Mediterranean archipelago in June, the Bill aims to permit Maltese courts to refuse the recognition and enforcement across foreign judgements related to licensees.

Loonstein Advocaten lawyers argue that this undermines Dutch jurisprudence, poses a danger to citizens and goes against EU law and the foundations on which the EU was founded.

“…the Maltese government has changed the Maltese gambling law very quickly and in a non-transparent way, without taking into account other EU member states and the rights of their respective residents. This goes against European laws and treaties,” the letter to Weerwind reads.

Adding: “This law would therefore set a dangerous precedent. Not only for proceedings against Maltese gambling companies, but also for the recognition and enforcement of judgments within Malta and the EU in general. Such a precedent would seriously undermine European treaties.”

Specifically, Bill 55 looks to prevent enforcement action against MGA licensed operators under two sets of circumstances. Firstly, if an action conflicts with or undermines the provision of gaming services in Malta it cannot be undertaken.

Additionally, enforcement measures could not be taken if the action made by the operator relates to an authorised activity lawful under the Gambling Act. 

This effectively means that Maltese courts could refuse recognition and enforcement actions in Malta by foreign betting and gaming regulators.

“We call on the Dutch government to stand up for the interests of this group of Dutch people and to ensure (via the European Commission) that Malta does not continue with the contempt of the rule of law laid down in the EU treaties,” the communication concludes. 

“We also appeal to the government to ensure that companies that do not respect Dutch judgments lose their permits and/or are no longer eligible for a permit.”

In response to recent criticism, the Malta Gaming Authority stated a belief that Bill 55 is “in full conformity with EU law and is based on the freedoms afforded to an entity established within the internal market”.

Malta’s government and the MGA believe that its provisions are “accurate and transparent”, and remain compliant with EU laws on the freedom to provide business services as one of the central principles of the European constitution.

These are if overseas regulatory enforcement “conflicts with or undermines the provision of gaming services in Malta” or if the company’s own actions were compliant with Maltese law.

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This came in the latest set of parliamentary questions, which saw Mirjam Bikker of the Christian Union, Michel van Nispen of the Socialist Party, Kees van der Staaij of the Political Reformed Party and Songül Mutluer of the Labour Party, field ten questions that covered on array of issues.

Regarding a proposed cessation of advertising, which was initially set to be implemented from January 1, 2023, Weerwind confirmed that this will be enforced by the start of July at the latest.

The ban on non-targeted advertising has been enforced as part of a larger effort to curb the impact of gambling advertisements on young people, addressing concerns raised by addiction experts. 

“The decree that extends to a ban on untargeted advertising for online games of chance will enter into force no later than July 1, 2023,” he answered after being quizzed on when the ban would “finally take effect”.

This initial step will see advertising banned via television, radio or in public indoor or outdoor spaces.

Furthermore, the aforementioned cross-party group of Dutch MPs also issued questions on “a two-strikes-you’re-out model,” which, it was said, would see those that “repeatedly target young people” potentially be stripped of their licence.

However, Weerwind was quick to note interventions must be carried out in proportion to the violation, with the Kansspelautoriteit’s enforcement strategy based upon “proportionality and subsidiarity”.

He commented: “Experience shows that norm-transferring discussions often already lead to compliance with the rules and orders subject to periodic penalty payments are not necessary. 

“If an order subject to periodic penalty payments does not lead to compliance with the law, a fine may also be imposed in addition to or instead of an order subject to periodic penalty payments.”

“In addition to being able to impose orders subject to periodic penalty payments and fines, the Koa Act also gives the Ksa new powers, such as imposing a binding instruction. With this, promoters, such as payment service providers, and other parties that provide essential services can also be stopped. 

“This requires customisation and I think it is important that the regulator has the scope to provide this customisation. A two-strikes-you’re out model does not fit in with that.”

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The sum of €9.87m (unlisted by the Ksa at the time of publication) becomes the latest in a number of financial penalties handed down during the current year, with the operator vehemently denying the allegation.

Videoslots accuses the Ksa of “abusing the mystery shopping regime” in applying the sanction, suggesting that the regulator “calculated the fine based on several guesstimates”.

In offering detail on what led to this point, the operator noted that in preparation for a Ksa application in April 2022, the regulator’s logo was “mistakenly visible for a short period of time”. It is noted that it was “quickly removed”.

However, Videoslots added that the Ksa tried to sign-up as a Dutch customer after becoming aware of this, but failed due to the systems put in place. It is also suggested that the regulator accessed the site as a German customer, before making a deposit and sole wager of 20 cents.

Ulle Skottling, Deputy CEO at Videoslots, said: “Videoslots does not target but restrict the Netherlands, so the Dutch Gaming Act does not apply to its services. No Dutch players were able to access our site during the disputed period and there was no violation as a result.

“It is absurd that the Ksa should fine us after gaining unauthorised access. It is simply not possible to protect fully against unauthorised access, and the Ksa has no guidelines on what measures are sufficient. 

“Furthermore, there was no demonstrable damage, and the interests of Dutch consumers were never compromised at any point. The Ksa calculated the fine based on several guesstimates. There is no basis for it and all sense of proportionality is missing.

“Videoslots takes its legal and regulatory obligations extremely seriously, but we dispute the Ksa’s actions and conclusions, which we believe are unlawful. We are confident of a positive outcome in this case.”

Already this year, the Ksa has issued a slew of sanctions, which includes handing out penalties of €900,000 to Shark77, €400,000 to Joi Gaming, €350,000 to Bingoal and €900,000 each to Equinox Dynamic from Curaçao and Slovakia’s Domiseda and Partners.

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Responding to a series of probing questions from Michiel van Nispen of the Socialist Party and Mirjam Bikker of the Christian Union, Weerwind tackled the issues of potential delays to payouts as well as withdrawal cancellations and if a potential cessation of such an option could minimise harms.

Regarding the former, the Minister noted that licence holders are obliged to credit and debit players’ gaming accounts “without undue delay,” but highlighted that it falls within the Gaming Authority’s remit to supervise compliance with such issues.

Despite seeming to acknowledge that such delays have been evidenced, Weerwind said that thus far the “delayed payment of gaming credits have not been sufficient reason for the Gaming Authority to investigate this further.”

Adding: “The speed with which payment is made depends on the circumstances of the case. For example, it may be necessary to carry out a check for fraud and money laundering or a check in which the provider checks bonus conditions before a bonus can be paid. One gambling provider may be faster than the other. 

“The standard remains ’without undue delay’, supervised by the Ksa as described above. There is currently no reason to intervene”.  

Furthermore, Weerwind was also quizzed on the option for players to reverse withdrawal requests, with van Nispen and Bikker voicing concern that encouragements could be made by licensees as such action would benefit their revenue models.

In response, Weerwind highlighted that such cancellation of payments must be viewed in relation to the duty of care implemented by the potential group in question to prevent gambling addiction.

He also warned that operators must be “constantly alert to signs of problematic gaming behaviour and must intervene decisively if there are signs”.

In addition, the Minister reminded that while a one-off cancellation may not be viewed as problematic, the action must be taken in context with an individuals’ entire gaming behaviour.

A reminder was also given regarding an ongoing regulatory investment into the fulfilment of duties of care by licensees, with the study expected to be completed by spring of next year.

The final question issued continued down the path previously trodden, but asked that if reverse withdrawal requests were outlawed could this help to minimise the potential risks that could be associated with continued play for some users.

“Participants in games of chance must be able to control the amount in the gambling account. A player can request the licence holder to pay the amount on the gaming account,” Weerwind answered.

Adding: “Part of being able to take control yourself is also the possibility to still be able to cancel a payment order. As indicated earlier … the risk of someone playing on for too long is counteracted by the implementation of the duty of care by providers. 

“In anticipation of the results of the aforementioned investigation by the Gaming Authority, I see no reason to prohibit cancellation.”

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The company, which represents approximately 90 per cent of the amusement centre sector, had previously stressed a desire to see its arcade halls solely feature machines with skill games.

This, it was added, meant that “there is no longer room for slot machines with games of chance”. Ksa concern was raised due to referrals of such venues as “children’s casinos”.

“The reason was that research by the Ksa had shown that there were machines in the centres that look very similar to gambling machines,” said Jansen in his latest blog entry.

“The only difference between machines in the slot machine halls and those in the arcade halls was that sometimes cash came out of the first and chips or receipts that could be exchanged for (smaller) vouchers or prizes in kind from the second.”

With the Betting and Gaming Act making an exception for these machines due to the risk of developing gambling addiction in such places being considered small, Jansen added that this brings a main disadvantage of proper supervision not being possible.

“The Ksa was particularly concerned that more and more permanent arcade halls were popping up in city centres. Where a minimum age of 18 years applies in slot machine halls (and sometimes 21 years, depending on the APV), minors are allowed to enter the amusement centres,” he continued.

“However, it cannot be the intention that minors come into contact with gambling. As you know, the brains of minors are still developing. This makes them particularly prone to developing gambling addiction, either immediately or later in life.”

Talks between the two parties had previously led to a promise that machines that do not predominantly require skill would be removed in phases, with a vow also issued to ensure such elements are not used by minors.

“Members of FEC Nederland are subject to an annual audit to check compliance with the agreements,” Jansen concluded.

“Suppliers and non-members of FEC Nederland have been made aware of the development that has been initiated and are encouraged to go along with it. For example, producers are encouraged to make or convert ‘skill-based’ games (based on dexterity).

“I have seen with my own eyes that the industry is working on the turnaround. A conscious decision was made to make a real ‘business case’ of entertaining (among other things) children with games of skill. 

“The Ksa remains in favour of removing the exceptional regime for fairground machines from the law, as we previously informed the Minister for Legal Protection (gambling policy). 

“In the meantime, it is good that an important part of the industry is moving in the right direction of its own accord.”

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The reason for such a move, said the Kansspelautoriteit, is due to the heightened levels of activity that are expected to be witnessed after the men’s FIFA World Cup officially got underway this past weekend.

It is stressed by the pair that the overarching ambition of the campaign, which is primarily aimed at young people aged 18-25, is to raise awareness of the subject of gambling and the risks involved.

The test aims to enable players to recognise associated risks and keep gaming behaviour under control, and can be taken via the Loket Kansspel website  Questions include how well you as a player are able to control yourself, how strong you are should money have been lost, and if you will bet again.

Furthermore, in addition to the numerous hints and tips, such as encouragement to share your story, tips for recognising signals and podcasts of real stories, Loket Kansspel also features “six steps you can take yourself to put an end to gambling”.

This includes unsubscribing from all gambling, confiding in someone, giving someone temporary charge of finances, finding a distraction, coming up with an emergency plan getting direct help from a care provider.

Loket Kansspel contains tips, advice and information about conscious gambling and how to stop in case of problem behaviour. The Gambling Counter is one of the spending targets of the addiction prevention fund, which came about as a result of the Remote Gambling Act. Players and those around them can go to the counter for information, advice and, if necessary, referral to care in their own region.

At the end of October, the Dutch regulator warned of enforcement action and the potential of “even more far-reaching regulation” should a “new tidal wave of advertising” be witnessed as the men’s football World Cup approaches. 

During the Football spectacle, the Ksa has reiterated a warning that it is extra alert to violations of laws and regulations.

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This followed a market-wide preliminary study into compliance obligations that was conducted earlier in the year, following which it was discovered that the two unnamed licence holders did not sufficiently control the gaming behaviour of the players.

After user data was closely examined, it was found that players, including young adults, were able to lose and top up tens of thousands of euros in a short period of time, without the providers having to intervene or investigate. 

“Such an investigation should, for example, focus on whether a player can afford such amounts or on the origin of the money,” the Kansspelautoriteit noted.

Among the discoveries was that of a 21-year-old that lost €17,000 between October and December 2021, a 26-year-old who gambled almost €114,000 euros in November 2021, a 23-year-old that lost €87,000 between October 2021 and March 2022 and a 29-year-old that made €27,000 in bets across a two week time frame.

The firm’s in question have been told that they must have tightened up their monitoring of gaming behaviour within three months, ahead of a further Ksa investigation in the new year.

The Ksa added: “Gaming providers must monitor the behavior of their customers and act on it if there is unusual behaviour. 

“Examples of this are when a player suddenly deposits high amounts or when there is a suspicion of match fixing. Such incidents must be reported to the Financial Intelligence Unit Netherlands. 

“In its Wwft Guideline, the Ksa previously pointed out the risk of high deposits, even when they come from the player’s bank account. The Ksa is very concerned that gambling addicts commit criminal activities in order to continue gambling.”

Last month, the Dutch regulator has warned of enforcement action and the potential of “even more far-reaching regulation” should a “new tidal wave of advertising” be witnessed as the men’s football World Cup approaches.

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This inclusion of a role model is said to have violated Kansspelautoriteit protocols, rather than come about as a breach of a ban on the usage of such individuals that entered force in the country on June 30, 2022.

From October 2021 – March 2022, the person in question was found to have been featured in TV and online commercials for NPL’s Deal or no Deal lottery game, which represents a breach of regulations.

“If they want to use a famous Dutch person in an advertisement, providers of less risky games of chance, such as lotteries, must investigate the reach of that person among minors and young adults,” the Ksa noted. 

“If this is substantial, the role model may not be used in advertisements. Because young people are vulnerable to developing gambling addiction, they need extra protection.”

However, the NPL reportedly did not investigate until asked, with the Ksa establishing that “the role model in question has a substantial reach among young people” and therefore should not have been used.

Despite having the potential to issue a fine for the infraction, the Ksa noted that the decision to just impose a warning was partly due to this aforementioned change in regulations coming after the time frame in question in this particular case.

From June 30, 2022, role models are no longer be permitted in gambling ads throughout the country, a decision that was said to concern “all persons who enjoy some form of public fame, such as (former) professional football players, influencers and models”

However, for those segments deemed “less risky,” such as lotteries, a role model may not be used if that person is deemed to have a substantial reach among minors and young adults.

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