Dutch Gambling Act Fails to Adequately Protect Consumers

The Netherlands implemented new rules regarding gambling sponsorships effective from July 1, 2024. Despite the strict rules, the sector continues to attract gamblers and lacks sufficient protection when it comes to excessive gambling and harm, a newly released report warns.

Evaluation Looks Into KOA

WODC, a government research agency, recently hired Dialogic to conduct an evaluation of the Remote Gambling Act, also referred to as KOA. Concerningly, the newly released report warned that the existing framework is “inadequate,” calling for an urgent overhaul of the rules to protect consumers from gambling harm and addiction.

Notably, the assessment uncovered that gamblers online are not sufficiently protected. As an example, the research pointed to the money and time limits that are available to Dutch players. While that’s a good idea, in practice, those limits do not work the way they should, considering that players need to set them for each iGaming website.

In other words, once a player reaches their limit with a particular online gambling brand, they can simply visit another operator and continue to gamble. This insufficient protection helps create the perfect conditions for excessive gambling and harm.

The new assessment of KOA also criticized the trust in operators when it comes to duty of care to their customers. Currently, licensed operators in the Netherlands need to monitor their customers’ activities and identify ones who are displaying signs of addiction or problem gambling. However, the research argued, that operators are more inclined to grow their customer base and see players spend more rather than restricting them. “The evaluation shows that they fulfill this duty of care differently and often insufficiently,” the research uncovered.

The new research also pointed to the current advertising rules. Criticizing those rules, the WODC explained that they do not effectively protect vulnerable individuals from gambling ads.

WODC Submits Recommendations to Address Regulatory “Bottlenecks”

In light of the findings of the new research, the WODC filed a number of recommendations, asking for urgent changes that address KOA’s “bottlenecks.” Importantly, the agency called for an expansion of the gambling regulator’s instruments for monitoring the licensed market.

Additionally, the WODC called for enhanced protection for vulnerable groups. According to the agency, such rules must encompass a wide range of activities, including advertising, marketing communication online as well as promotions.

Another urgent recommendation is related to the gambling operators’ duty of care. “Prescribe the duty of care centrally and no longer leave this to the sector,” said the WODC.

Equally as important would be for the market to continue combatting unlawful gambling. Per the agency’s recommendations, if effective and better enforcement is applied to the illegal sector, it would be less attractive and more difficult to access.

Last but not least, the WODC pointed to the importance of preventing gambling harm and combatting gambling addiction.