The Dutch legislature has decided to prohibit online slot machines.
The lower chamber of the Dutch Parliament voted this afternoon (April 16th) to outlaw online gambling promotions and “high-risk” online gambling, including slot machines.
This news suggests that the Dutch lower house has secured a majority vote in favor of prohibiting all forms of targeted advertising as well as slot machines, which are considered “high-risk” gambling.
Dutch gambling publication Casino Nieuws first reported the news, outlining the proposals made in the Dutch lower house today.
Both proposals were put forward by Socialist Party member Michiel van Nispen and received “just enough” support to secure a majority vote. Representatives also passed proposals for mandatory financial risk checks and identity verification related to gambling.
Overall, the lower house voted on 114 proposals submitted during multiple discussions last week. Of these 114 proposals, 14 were from previous debates on gambling, with 10 being adopted. These included representatives voting in favor of prohibiting all online advertisements, lottery games with a “clear high risk,” and authorizing credit checks.
Previously, a proposal to prohibit gambling advertisements was not supported.
In the second month of 2024, a suggestion by a representative in the legislative body, Dirk Boswijk, to completely prohibit promotions for gambling activities failed to secure enough votes to be enacted. This week, a member of the Social Democratic Party, Michiel van Nispen, introduced a new suggestion that resembles the original proposal from February. This time, the proposal was approved by a narrow margin, receiving 77 votes.
The new prohibition will reportedly prevent all forms of online promotions, including all targeted promotions.
This follows the Netherlands’ prohibition on non-targeted promotions that took effect on the first day of July, 2023. As a consequence, mass promotions on radio, television, public spaces, and printed materials are forbidden. Sponsorships of sporting events are also included in the prohibition. However, a transitional period is currently being implemented for existing sponsorship arrangements.
The Netherlands prohibits online slot machine gambling
Another suggestion put forward by van Nispen focuses on “online gambling with a demonstrably high risk.” In his party’s viewpoint, games of chance, such as online slot machines, should be prohibited. This is because “participants cannot influence the outcome of the game.” A majority of the 79 members of parliament voted in favor of the suggestion.
However, despite the majority of the House of Representatives in favor of the prohibition, it still requires further procedures to be written into law. Now it is the responsibility of the Dutch Minister of Legal Protection, Frank Wever, to examine and approve the law.
Wervinden has consistently been a staunch supporter of accountable gaming. Nevertheless, he has never explicitly stated that he desires to implement stricter regulations.
In December of 2023, Wervinden revealed new measures designed to safeguard players. These measures involve mandating that suppliers contact players who establish a deposit ceiling of €350 (£303/$386). Operators are also obligated to inform these players about the potential hazards associated with gambling at such an elevated limit.
Wervinden’s other proposals, as reported by CasinoNieuws at the time, encompass displaying amounts in euros and advocating for further investigation into comprehensive game limits.
In October of 2023, Wervinden also unveiled a multi-year digital recovery campaign plan to combat fraudulent activities related to online gambling.
“Any individual who desires to participate should be able to engage in a game of chance responsibly,” Wervinden stated in a letter at that time. “However, responsible gaming can evolve into problematic gambling.”
“Players must be cognizant of this and shielded. The current state of affairs is insufficient. Research indicates that providers incentivize players to wager more than they can afford to lose.”
If such a prohibition were to be implemented, it would inevitably have a substantial negative impact on the regulated industry. This would also encompass an effect on national revenue. This can be observed from the revenue generated by the online casino sector.
The Dutch Gaming Authority (KSA) recently determined that internet casinos presently contribute 77% of the nation’s total gambling income.
If internet slot machines were prohibited, it would undoubtedly result in a resurgence of the unregulated marketplace. Germany serves as an illustration, where clandestine operators have witnessed a surge in activity.
This would be particularly detrimental to the success of the regulated Dutch marketplace. When the market was re-regulated in 2021, the KSA aimed to ensure that at least 80% of the market share was controlled by regulated operators within three years. Currently, the channelization rate is estimated at 90%, both in terms of players and web traffic. This makes the Netherlands one of the most successful markets in Europe.
In contrast, Germany is facing significant challenges due to excessive regulation. A study by the University of Leipzig has shown that nearly half of online gambling in Germany is still conducted by unlicensed operators.
The study was commissioned by the German Online Casino Association (DOCV) and the German Sports Betting Association (DSWV). It highlights that nearly 50% of German players use unlicensed websites.
The study estimates that the black market contributes three-quarters of online revenue. As a result, the state is losing hundreds of millions of euros in tax revenue each year.
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