Netherlands Regulator Rebukes Operators for Role Model Advertising Violations

The Netherlands Gaming Authority (KSA) has taken action against two unnamed operators for violating regulations prohibiting the use of role models in their advertising campaigns. These actions come as part of the KSA’s ongoing efforts to ensure compliance with strict advertising standards in the Dutch gambling market, holding violators accountable and issuing fines when necessary.

The Operators Got Away with a Stern Warning

One of the offending operators, an unnamed online sports betting firm, offered customers the opportunity to win the shirt of a well-known soccer player from the Eredivisie, the top-flight league of Dutch football. The other company used images of an unspecified famous actor to promote its online gambling game. 

Despite the specific details of the advertising breaches, including the identities of the players, clubs, or actors involved, remaining undisclosed by the KSA, the regulator has reiterated its stance on prohibiting using role models in gambling advertising. The authority notes that such practices could have a disproportionate effect on vulnerable groups such as children, introducing them to the dangers of gambling.

To protect vulnerable groups, strict rules apply to the use of role models in recruitment and advertising activities.

KSA statement

This restriction dates back to 2022, when the KSA implemented a comprehensive ban on using role models, including former football players and brand ambassadors, in gambling advertising. This ban extends to any promotion of games of chance. Although the rule exempts charity and state lotteries, they must first assess the reach of a role model among minors and young adults.

The Netherlands Market Faces Ongoing Issues

While the two operators did not face financial penalties, the KSA regularly fines more serious offenses. April saw the regulator crack down on a company operating without a license, telling it that failure to comply could lead to a penalty of up to €280,000 ($300,700) per week to a maximum of €840,000 ($902,200).

These actions by the KSA underscore its commitment to promoting a safe and responsible gambling environment in the Netherlands. However, despite regulatory efforts, the country must overcome challenges in channeling players to legal operators. The KSA’s latest report highlighted a decline in the channelization rate, with fewer players opting for legal operators over unlicensed ones. 

Critics have raised concerns about the potential impact of stringent advertising regulations and player protection measures on the Dutch gambling industry. Some argue that these measures may be alienating consumers and hindering market growth. As the KSA navigates these challenges, it remains focused on balancing consumer protection with industry sustainability to ensure a thriving and responsible gambling market in the Netherlands.