Dutch Gambling Association Warns of Black Market Dangers

The Dutch Online Gaming Association (NOGA) has issued a warning that a vote by the Dutch House of Representatives to prohibit online slot machines and online gambling advertising will drive gamblers into the illicit market.

NOGA cautioned about the black market dangers posed by a Dutch slot machine prohibition. The Dutch House of Representatives voted on Tuesday (April 16) to ban all targeted advertising, and also voted to prohibit “high-risk” gambling, including slot machines, according to Dutch gambling news website Casino.

In addition to the two proposals put forward by Socialist Party MP Michiel van Nispen, other motions were approved requiring mandatory financial risk checks for gambling, as well as identity verification.

Although the ban has been approved, it still needs to be codified into law. Dutch Minister of Legal Protection Frank Weverwind will review and decide whether to endorse the legislation.

NOGA labeled the move “hasty and reckless” and also cautioned Weverwind against making an irrevocable decision.

“The House is attempting to force a decision based on incorrect figures, assumptions and unrealistic fears,” said NOGA chairman Peter Paul de Goey.

“Minister Weverwind has thus far remained composed.”

We depend on the outgoing administration and the incoming administration to maintain this sensible course, never compromising the safety of online players.”

NOGA cautions that the new prohibition will compel players to resort to illicit operators, as previous endeavors to entirely prohibit gambling advertising have failed prior to Tuesday’s vote. Earlier this year, a complete ban on gambling-related advertising failed after a proposal by MP Dirk Boswijk. However, Van Nieuwenhuizen’s new proposal on advertising passed with 77 votes.

Meanwhile, a ban on “high-risk” online gambling passed with 79 votes on Tuesday.

NOGA estimates that 90% of Dutch players wager with legal providers. However, the association worries that the new legislation will force gamblers back to the illicit market.

NOGA is concerned that the new advertising ban will mislead players, making it challenging for them to determine if they are working with illegal providers.

“The House majority is taking a risky gamble with online players who are now deliberately choosing legal products,” De Gooijer explained.

“If we quickly discover that politicians have made a hasty wrong decision, the House will be accountable for the negative consequences.”

Remote Gambling Act to be assessed in 2024
The Dutch Ministry of Justice and Security will assess the Remote Gambling Act later this year.

However, NOGA and De Gooijer claim that there is not yet sufficient data to conduct a proper assessment.

At present, extensive investigation is underway due to the scarcity of data for making well-informed choices. “Let’s hold off on making decisions until we have those findings, then engage in a meaningful conversation and make choices that will safeguard online participants as much as possible from problematic gambling and gambling dependency,” De Gooijer suggested.

The current gambling legislation in the Netherlands has not yet been assessed for remote gambling. Nevertheless, the Kansspelautoriteit (KSA) has initiated the development of strategies to endeavor to shield players from the detrimental effects of gambling.

The Netherlands has prohibited untargeted advertising, which took effect in July 2023. Mass advertising through channels such as TV and radio is forbidden. Sports sponsorships are also banned, although the Netherlands is still undergoing a transitional period for existing sponsorship agreements.

In October, the KSA announced a nationwide campaign against digital fraud to address concerns about online gambling crime.

At that time, the KSA outlined in a letter: “Anyone who desires to do so should be able to participate in a game of chance responsibly. However, responsible gaming can transform into problematic gambling.”

The KSA also implemented additional measures in December 2023. Providers will be obligated to contact bettors who establish a deposit limit of at least €350 (£303/$386). Operators will be required to inform players of the risks associated with gambling with such a substantial sum of money.

Moreover, CasinoNieuws reports that Weerwind proposes presenting monetary values in euros. Weerwind also advocates for a more thorough examination of comprehensive wagering restrictions.

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