One online gaming company wants to ensure that it doesn’t have to pay for the actions of its affiliates as the Netherlands develops its online gaming market. Tombola will require affiliates to complete a compliance review.
Forced Compliance Reviews
Flutter Entertainment recently acquired Tombola, an online bingo site. All affiliates must undergo a compliance inspection before the contract can be signed. It will refer the companies to XY Legal Solutions BV, which will review their operations.
However, the check can only go so far. XY Legal says that the compliance checks are not quantitative and focus only on certain aspects of an affiliate site.
Affiliates will have to cover this cost, which is €1,125 ($1,271) per website. The company cannot go elsewhere if there are any other legal companies that could offer compliance checks for less. Tombola only allows XY Legal.
This is a first for iGaming in the Netherlands, but it’s not likely to be the last. Gaming operators want to avoid being held responsible for the actions of affiliates. They don’t want any penalties, but Tombola’s solution is not the best.
Affiliate Responsibility Increases
Once an affiliate has expressed interest in Tombola’s services, it will reach out to XY Legal and complete the compliance check. Once the law firm has approved the company, it will apply for the “KVA” seal, which indicates that it meets all requirements.
This seal of approval is valid for one year. The affiliate must contact XY Legal again to renew its compliance check if it wants to continue to work with Tombola. The cost of this check will be €725 ($817) per site.
Marc Smit is Tombola’s Country Manager for the Netherlands. He stated, “We do indeed set the KVA seal of approval as a condition for starting an affiliate program at Tombola. We believe that an affiliate partner should be tested.”
The approval of an affiliate does not necessarily mean it meets the requirements set forth by the Kansspelautoriteit, the Dutch gaming regulator. This entity has its own procedures, requirements, and requirements. The KSA is unlikely to recognize XY Legal’s seal of approval in the future.
Too Expensive for Some Companies
The idea of a compliance inspection seems solid. It is an option for companies to provide additional protection to their operations. The idea may not be sustainable for everyone. Jan Westerhoff, an iGaming specialist in The Netherlands, says the cost might be too high for many companies.
Westerhoff said in a blog article on Nieuwslog that Tombola was the only Dutch KSA license holder who imposes this requirement. Betcity and Bet365, other operators in the country, conduct their own compliance checks and do not charge affiliates.
He also said that the cost could rise to the “tens and thousands of euros,” which might prove too expensive. Accordingly, the “only winners would be the money-grabbing consultants who want to make a quick buck,” he asserts.