KSA research reveals flaws in online gambling risk analysis system
Following an investigation, the regulator reported that the risk analysis process is burdensome for operators yet provides limited additional protection for players.
Key points:
– KSA review found that the current risk analysis requirements for online gambling providers are inconsistent and costly
– Analyses often vary in outcome and are typically performed at category rather than game level
– The regulator is working with the Ministry of Justice and Security on improvements to create a more uniform system
The Netherlands Gambling Authority (KSA) has published research findings that highlight deficiencies in the risk analysis framework governing online gambling operators.
The investigation examined how licensed providers conduct mandatory risk assessments of their gaming offerings under current duty of care regulations.
The research revealed that the risk analysis system implemented when the Dutch online gambling market opened in October 2021 is not functioning as intended.
Online gambling licensees are required to conduct comprehensive risk analyses of their game offerings to determine appropriate player protection measures, yet the KSA’s investigation found inconsistencies in both methodology and outcomes.
Five different research methods are currently being employed across the industry, leading to varying results even when the same games are assessed by identical parties or offered by different providers.
This lack of standardisation makes it difficult to compare analyses across operators and undermines the system’s effectiveness in protecting players.
The study also identified that providers typically conduct risk analyses at the category level rather than examining individual games, potentially resulting in certain high-risk games being incorrectly classified within broader, lower-risk categories.
Current regulations do not provide specific guidance on this approach, creating further ambiguity in the assessment process.
Beyond effectiveness concerns, the research highlighted the financial and administrative burden these analyses place on operators, while providing limited additional player protection benefits.
The KSA noted that conducting thorough risk analyses requires substantial resources and costs for online providers.
In response to these findings, the KSA has concluded that the current system requires optimisation and is engaging in discussions with the Ministry of Justice and Security regarding future improvements.
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