Dutch Gambling Licences to Require Operator Exit Plans

The Dutch gambling regulator, Kansspelautoriteit (KSA), has introduced a new requirement for all operators applying for a remote gambling licence in the Netherlands.

Mandatory “Exit Plan” Starting Next Year

From January 1, 2026 onward, any business looking to obtain a new licence or renew an existing one will have to clearly explain how they would leave the market if their licence were to expire.

According to KSA, the plan must detail the procedures an operator would use to halt all of its offerings in the Netherlands and fully withdraw from the market, should they choose not to renew after the initial five-year period. The plan will become a mandatory part of any licence application or reapplication.

In addition, operators will be asked to provide a document explaining how they would keep the regulator informed of any changes to their policies or operations in a timely manner. The document will accompany a risk analysis covering compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) regulations under the Act on the Prevention of Money Laundering and Terrorist Financing.

The regulator made it clear that failing to meet these new requirements could result in operators’ applications being rejected, valid even for companies that have previously held a Dutch licence.

The announcement comes ahead of the fourth anniversary of the Netherlands’ legal online gambling market, which opened on October 1, 2021. This means that operators who were among the first to secure licences are getting near the end of their initial five-year term and will need to submit renewal applications before October 2026 if they want to continue operating in the domestic market.

Different Approach for Renewal Requests

Gambling companies looking for renewal will be subject to a different evaluation process compared with first-time applicants. This will include reassessment of their advertising protocols and policies regarding the prevention of gambling addiction, as well as the integration of a control database test. 

The KSA also issued a warning to operators with compliance issues in the last five years, informing them of the potential impact of their “mistakes” on their renewal applications. 

According to the gambling authority, those providers will need to explain what they have learned from previous mistakes and “how they intend to prevent recurrence”. Should the explanation be deemed insufficient, their permit may be denied, or they may be subject to more conditions and restrictions.

Plus, operators who fail to comply with any enforceable court rulings while reapplying for a license will be deemed untrustworthy, another reason for rejection. 

Last month, the KSA admitted that the gambling tax hike to 34.2%failed to generate any additional revenue, with gross gaming revenue dropping in both the online and land-based markets.