Legalization of the online gambling in the Netherlands-an interim balance sheet

In the Netherlands, the online sector of the gambling industry was recently legalized. Now the country’s gambling authority, Kanspelautoriteit-KSA for short-has a conclusion. At the gaming industry event, which takes place every year, the chairman of the KSA summarized the result in a speech.

Sales higher than expected, but do not yet pay entirely reliably

The online market for gambling was legalized last year. No official figures could be recorded beforehand. In Amsterdam, René Jansen – Chairman of the KSA – presented the results last Friday. He addressed both the success and the problems that arose. Accordingly, sales in online gambling are higher than expected. In the fourth quarter of last year, a total of 185 million $ in gross sales were booked in the industry. If this is converted to a whole year, total sales are 740 million $ per year. Before legalizing the online market, various experts, including H2 Gambling Capital, predicted an annual gross turnover of 630 million euros. With that they would have licensed gambling operator 110 million $ more than expected.

Nevertheless, according to René Jansen, it should be “formulated with care”. He denotes the licensed Online gambling game in the Netherlands as “in the infancy”. Therefore, not only forecasts, but also data with regard to the number of players should also be “enjoyed with caution”. There are currently 634,000 active game accounts with providers with licenses. However, possible double customer accounts are unnoticed. So a few players could have more than one account, but nevertheless each account was counted separately among the 634,000 accounts given. The number of accounts does not reflect the number of customers reliably.

However, this can reduce the concern for the rapidly increased game participation: “This number relativizes the claim that the legalization of the online gambling market will fire gambling. Some said that millions of Dutch citizens would take part in gambling. This has not been confirmed – at least the numbers do not show it ”.

18 license holders, 16 more in the test bench and 14 new applicants

Another 16 could be added to the current 18 license holders. According to Jansen, the assigned licenses are “by no means the end of the flagpole”. In addition to the 16 companies on the test bench at the end of last month, 14 more submitted an application for a license. Nevertheless, the past shows that only every third applicant is successfully licensed. It is therefore unlikely that there will be 30 more licenses.

Volume of gambling advertising represents a problem-with solutions

Despite the successful financial conclusion, there are also problems. According to Jansen, gambling advertising counts. Since October, the extent of the total volume of advertising can be described as “excessive”. So far, the gambling law in the Netherlands has regulated content and broadcast times of gambling advertising. On the other hand, the total volume is not taken into account. The KSA authority initially relied on the self -regulation of the industry. The chairman of the KSA now spoke of it as a “naive expectation” on Friday.

Even if the extent of the advertising is more than desired, the large number of advertising is positive for the canalization of the players. The chairman of the Kanspelautoriteit Jansen said: “On the other hand, I am happy about the results we see so far. A canalization of the players from the illegal to the legal market is already very clear. And that is exactly what the end is: The Dutch consumers who want to play find their way to secure gambling products. ”Nevertheless, dramatic restrictions would come to the industry. The Dutch Minister of Laws Franc Weerwind announced a partial ban on gambling advertising. This law that is to be launched would prohibit gambling advertising in print and radiomedia, among others.