An evaluation of the Remote Gambling Act (KOA) in the Netherlands has highlighted critical failings and gaps in legislation protecting consumers and vulnerable groups.
The House of Representatives has received the ‘WODC Report,’ conducted by the Research Agency for Justice and Security, which evaluates the Remote Gambling Act (KOA) – the legislative framework that launched the Dutch online gambling marketplace in October 2021.
The three-year evaluation determined ‘mixed outcomes’ for the policy objectives sought by KOA, which aimed “to create a responsible, reliable, and verifiable gambling offer and to direct players to this regulated offer”.
While the legislation has developed a reliable alternative to unlicensed options, the report deems that policies have failed to establish ‘responsible gambling environments.’ This shortfall is attributed to KOA not intending to drive demand for online gambling.
KOA is criticised for maintaining an ‘open mechanism’ that allows potentially unlimited providers, which encourages competition but does not sufficiently prioritise responsible gambling.
The competitive environment, compounded by financial motivations to keep players engaged, means providers may not strictly uphold protective measures, thus risking player welfare.
Mixed outcomes of normalisation of Gambling
Policy perspectives are mixed, as the report highlights that participation in online gambling has grown, particularly among young males (24 and under).
The report raises concerns over the ‘normalisation of gambling,’ citing statistics that “70% of surveyed online players reported that they started gambling online when the KOA came into effect” and “an 80% rise in the number of active player accounts among young adults compared to the end of 2021.”
Hindering its policy objectives, the evaluation finds that KOA maintains ambiguity in defining key areas of duty of care, consumer protections, and addiction prevention.
As a result, KOA reveals a ‘conflict of interest’ due to inconsistencies regarding duty of care, where licensed operators are deemed “not the right party to fulfill these standards.”
“The duty of care consists of open standards that are interpreted differently by providers. The current approach to gambling limits cannot be seen as a protective measure, especially for high-risk gamblers. Information about game conditions, player balances, and general terms and conditions is available from all licence holders.”
“In addition, providers have commercial interests alongside the duty of care, meaning they are not the appropriate party to fulfill these standards.” This leads to inconsistencies, as operators interpret and implement duty of care differently.
KSA deficiencies
The Gaming Authority (KSA) faces significant challenges in effectively supervising gambling providers. Privacy and legal issues restrict direct monitoring of player interactions on licensed platforms.
The authority also struggles to enforce the ban on illegal gambling, as these providers often operate internationally and are shielded by complex legal jurisdictions, making it difficult to apply Dutch regulations effectively.
Protections such as gaming limits, intended to curb excessive gambling, are not uniformly effective because players can evade these limits by using multiple providers. Without a system that transcends individual providers, high-risk gamblers can easily switch platforms once they reach their limits, undermining the intended protective effect.
The report suggests a need for provider-transcending limits, but such measures are currently absent, placing too much reliance on individual self-regulation, which is especially challenging for high-risk players.
The KSA also needs to improve its collaboration with addiction experts, as there is a noted lack of cooperation between addiction experts and gambling providers in developing effective addiction prevention strategies.
Some addiction experts are hesitant to engage with gambling providers due to concerns about conflicts of interest and a lack of genuine partnership. This separation reduces the effectiveness of current addiction prevention initiatives.
The report recommends several improvements, including overarching gaming limits, enhanced advertising restrictions, and improved KSA enforcement powers, such as the ability to block unlicensed providers at the DNS level.
There is also a call for more structured cooperation between gambling providers and addiction experts, as well as more accessible data for research, to ensure that policy adjustments are evidence-based and protect public welfare.
KOA reforms continue
Secretary of State for Legal Protection, Teun Struycken, has committed to evaluating whether additional measures to strengthen licensees’ duty of care should be introduced, potentially through policy adjustments or ministerial regulations rather than legislative changes.
This could revive discussions around a ban on online slots, as the review indicates that Struycken is considering restrictions on “high-risk games” within the legal product offerings, specifically targeting “online gaming machines” within the existing legal framework.
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