The Dutch legislature has approved a measure to prohibit internet slot machines.
The lower chamber of the Dutch legislature voted this afternoon (April 16th) to prohibit online gambling promotions and “high-risk” internet gambling, encompassing slot machines.
This decision signifies that the lower chamber of the Dutch legislature has secured a majority vote in support of prohibiting all forms of targeted advertising and slot machines, which are deemed “high-risk” games.
Dutch gambling publication Casino Nieuws initially reported on the matter, outlining the motion that transpired in the lower chamber of the Dutch legislature today.
Both proposals were presented by Socialist Party member Michiel van Nispen and garnered “sufficient” support to pass with a majority vote. Members of Parliament also approved proposals concerning mandatory financial risk assessments and identity verification related to gambling.
In totality, the lower chamber voted on 114 proposals that were submitted during multiple discussions last week. Of these 114 proposals, 14 originated from prior discussions on gambling, of which 10 were adopted. This included members of Parliament voting to prohibit all online advertising, gambling games with “obvious high risk,” and mandatory credit checks.
Previously, a proposal to prohibit gambling promotions did not receive approval.
During the second month of 2024, a suggestion made by Dirk Boswijk to entirely prohibit gambling advertisements failed to gain approval in a parliamentary vote. This week, a similar suggestion was put forward by a member of the Social Democratic Party, Michiel van Nispen, and this time it succeeded, securing a narrow majority with 77 votes in support.
The new prohibition will outlaw all forms of online advertising, encompassing targeted ads.
This ban follows a previous prohibition on non-targeted ads that came into effect in the Netherlands on the first day of July, 2023. This means that widespread advertising on radio, television, public spaces, and printed materials has been forbidden. Sports sponsorships are also included in the ban, but existing sponsorship agreements will have a period of adjustment.
The Netherlands has implemented a ban on online slot machine gambling.
Another suggestion put forward by Van Nispen centered on “online gambling with a demonstrably high risk.” His political party believes that games of chance, such as online slot machines, should be forbidden because “participants cannot control the outcome of the game.” The majority of parliamentarians, a total of 79, voted in favor of this suggestion.
While the majority of the House of Representatives supports the ban, further steps are required to formally enact it into law. The Dutch Minister of Justice and Security, Franc Weerwind, will now be responsible for examining and approving the legislation.
Wervend has consistently been a staunch supporter of ethical gambling practices. Nevertheless, he has never explicitly voiced a desire for more stringent regulations.
Wervend unveiled a series of new player safeguards in December 2023. These safeguards include mandating suppliers to reach out to players who have established a deposit cap of €350 (£303/$386). Operators are also obligated to inform these players of the risks associated with gambling at such elevated stakes.
As CasinoNieuws reported at the time, Wervend’s other proposals included displaying amounts in euros and advocating for a more in-depth analysis of overall game limitations.
Wervend also announced a multi-year digital resilience campaign in October 2023 to combat fraud related to online gambling.
“Anyone who wishes to do so should be able to engage in games of chance responsibly,” Wervend stated in a letter at the 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 suppliers encourage players to wager more than they can afford to lose.”
If such a prohibition were to be implemented, it would undoubtedly have a substantial negative impact on the regulated sector. This would also encompass an impact on national income. This can be observed from the revenue generated by the online casino industry.
The Netherlands’ Gaming Authority (KSA) recently estimated that internet casinos currently make up 77% of the nation’s total gambling income.
Germany’s experience shows that prohibiting online slots will inevitably cause a revival of the unregulated market and a surge in traffic to black market operators. This will negatively affect the success of the regulated market in the Netherlands. When the market was re-regulated in 2021, the KSA aimed to ensure that at least 80% of the market share was under the control of regulated operators within three years. Currently, the estimated channelization rate is 90%, making it 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 warns that almost half of online gambling in Germany is still conducted through unlicensed operators. The study, commissioned by the German Online Casino Association (DOCV) and the German Sports Betting Association (DSWV), emphasizes that nearly 50% of German players use unlicensed websites.
The study estimates that the black market contributes three-quarters of online revenue, resulting in the country losing hundreds of millions of euros in tax revenue each year.
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