On 26 January 2021, the Dutch government published the Remote Gambling Decree (Besluit kansspelen op afstand), which further specifies the licensing system for remote gambling and lays down rules for recruitment, advertising and addiction prevention in accordance with the Remote Gambling Bill (Wet kansspelen op afstand) that will be enacted on 1 April 2021. This decree in addition contains provisions about, among other things, the requirements for licensing systems and rules for prevention of match fixing and money laundering.
Formalization of practice
The original Betting and Gaming Act (Wet op de kansspelen), which lays down the legal framework for gambling, did not provide for the possibility to issue licences for organised remote games of chance, making participation in these games de facto illegal. Nevertheless, participation in these games was common practice for hundreds of thousands of Dutch people. With the Remote Gambling Decree and the subsequent Remote Gambling Bill, remote games of chance will become part of the Betting and Gaming Act, making it legal to host these events, if the host has a permit to do so.
Four types of online gambling
Because of the wide range of possible games of chance, the Decree makes a general division between four types of games of chance, being:
- Casino games in which the players play against the licence holder;
- Casino games where the players play against each other;
- Sports betting, and
- Bets on the results of horse races and harness racing.
Casino games also include remote controlled fruit machines. When granted, licences will be valid for a period not exceeding five years.
Requirements for licence holders
In accordance with the Betting and Gaming Act, the licence holder must have its registered office, management board or principal establishment within an EU or EEA country. However, exemptions from this requirement are possible under certain circumstances. In any case, the licence holder is subject to an extensive reliability assessment, performed by the Dutch Betting and Gaming Authority. This authority determines on a case-by-case basis which entities of the licence holder have to pass the assessment. As a result, it is possible that not only the licence holder itself has pass the assessment, but also its director(s) or ultimate shareholder(s).
Restrictions on advertisement
As one of the measures to prevent addiction and to protect consumers, a strict separation has been made between games of chance and other services. All gambling licence holders are prohibited from engaging in game recruitment and advertising activities on their apps or websites. Moreover, licence holders who offer remote games of chance may not at all engage in recruitment or advertising activities for goods and services other than the licensed games of chance, nor may they allow such activities by third parties on the games of chance interface. As a result, the games of chance interface will be entirely devoted to games of chance; no other products or services can or will be offered.
Supervision and enforcement
The Dutch Betting and Gaming Authority has the power to demand disclosure of business data and documents in accordance with the General Administrative Law Act (Algemene wet Bestuursrecht). Furthermore, the licence holder can be obliged, periodically and occasionally, to provide information that is important for the supervision of compliance with the Betting and Gaming Act. In addition, the licence holder is obliged to periodically provide information to the Authority of its own accord.
Finally, the entire game system and parts thereof that will be modified in the future have to be inspected by a designated, accredited inspection body before they are put into use. Inspection also includes testing and certification. To lighten the burden of licence holders, larger numbers of non-critical changes can be submitted in a single inspection period.
If you want to know more about the rules and regulations on betting and gaming in the Netherlands, please contact Hugo Botter (hbotter@akd.eu) or Floris van de Pol (fvandepol@akd.eu).
On 26 January 2021, the Dutch government published the Remote Gambling Decree (Besluit kansspelen op afstand), which further specifies the licensing system for remote gambling and lays down rules for recruitment, advertising and addiction prevention in accordance with the Remote Gambling Bill (Wet kansspelen op afstand) that will be enacted on 1 April 2021. This decree in addition contains provisions about, among other things, the requirements for licensing systems and rules for prevention of match fixing and money laundering.
Formalization of practice
The original Betting and Gaming Act (Wet op de kansspelen), which lays down the legal framework for gambling, did not provide for the possibility to issue licences for organised remote games of chance, making participation in these games de facto illegal. Nevertheless, participation in these games was common practice for hundreds of thousands of Dutch people. With the Remote Gambling Decree and the subsequent Remote Gambling Bill, remote games of chance will become part of the Betting and Gaming Act, making it legal to host these events, if the host has a permit to do so.
Four types of online gambling
Because of the wide range of possible games of chance, the Decree makes a general division between four types of games of chance, being:
- Casino games in which the players play against the licence holder;
- Casino games where the players play against each other;
- Sports betting, and
- Bets on the results of horse races and harness racing.
Casino games also include remote controlled fruit machines. When granted, licences will be valid for a period not exceeding five years.
Requirements for licence holders
In accordance with the Betting and Gaming Act, the licence holder must have its registered office, management board or principal establishment within an EU or EEA country. However, exemptions from this requirement are possible under certain circumstances. In any case, the licence holder is subject to an extensive reliability assessment, performed by the Dutch Betting and Gaming Authority. This authority determines on a case-by-case basis which entities of the licence holder have to pass the assessment. As a result, it is possible that not only the licence holder itself has pass the assessment, but also its director(s) or ultimate shareholder(s).
Restrictions on advertisement
As one of the measures to prevent addiction and to protect consumers, a strict separation has been made between games of chance and other services. All gambling licence holders are prohibited from engaging in game recruitment and advertising activities on their apps or websites. Moreover, licence holders who offer remote games of chance may not at all engage in recruitment or advertising activities for goods and services other than the licensed games of chance, nor may they allow such activities by third parties on the games of chance interface. As a result, the games of chance interface will be entirely devoted to games of chance; no other products or services can or will be offered.
Supervision and enforcement
The Dutch Betting and Gaming Authority has the power to demand disclosure of business data and documents in accordance with the General Administrative Law Act (Algemene wet Bestuursrecht). Furthermore, the licence holder can be obliged, periodically and occasionally, to provide information that is important for the supervision of compliance with the Betting and Gaming Act. In addition, the licence holder is obliged to periodically provide information to the Authority of its own accord.
Finally, the entire game system and parts thereof that will be modified in the future have to be inspected by a designated, accredited inspection body before they are put into use. Inspection also includes testing and certification. To lighten the burden of licence holders, larger numbers of non-critical changes can be submitted in a single inspection period.
If you want to know more about the rules and regulations on betting and gaming in the Netherlands, please contact Hugo Botter (hbotter@akd.eu) or Floris van de Pol (fvandepol@akd.eu).