We regularly read in Dutch newspapers that politicians and addiction experts are very concerned about the increase in online gambling. They fear it is getting out of hand since the legalisation of online gambling.
While the concerns are genuine, the real picture is much more nuanced and there are actually reasons for optimism. Indeed, initial, tentative results suggest that Dutch online gambling regulation is working well.
Since October 2021, the possibility of legal, and therefore safe, responsible online gambling has existed in the Netherlands. Before this, it was pretty much banned in the Netherlands. This did not mean it was not happening – quite the contrary. For instance, in January 2019, MotivAction estimated that over 1.8 million Dutch people regularly gambled online.
This was online gambling without any protection from the Dutch Government and without the strict supervision of the Dutch regulator Kansspelautoriteit (KSA). This unprotected and unsafe gambling was what the Government – rightly – wanted to put an end to. Consumers had to be properly protected from now on; gambling addiction had to be curbed, and crime and fraud had to be fought. Therefore, an open and strict licensing system was introduced in October 2021.
A lot has happened since then. Dutch people were treated to a hefty amount of advertising for online gambling. These advertisements came on top of the already existing advertisements for state and charity lotteries, scratch cards, lotto, Toto and land-based casinos. Gambling advertisements seemed almost inescapable in all media.
Annoyance was high and already in December 2021 – even before possible effects of such advertising were known – the House of Representatives forced the minister first to ban the use of role models and, eventually, to declare a ban on untargeted advertising for online gambling. This ban will take effect from 1 July.
At the end of April, the KSA reported in its fourth monitoring report that 762,000 Dutch people gambled online at least once in 2022. In addition, it estimated that 92% of Dutch online gamblers only gambled at providers licensed in the Netherlands. That percentage is reason for optimism, as the minimum legal target was 80% by October 2024.
The main government objective, to protect consumers, seems to be well within reach with this percentage already met in 2022. This fact has wrongly been completely under-reported. Both news coverage and reactions from politicians and healthcare were mostly alarmist – and unbalanced.
"These examples reflect well what the online gambling dossier suffers from above all else: fear – and a severe lack of reliable and comparable data"
For instance, from the KSA report mentioned, a small part was lifted and taken out of context: more than 60% of online gamblers were said to have started gambling after regulation. This is incorrect. Indeed, MotivAction’s estimated number of online gamblers from 2019 contrasts sharply with the 762,000 reported by the KSA in 2022.In addition, the same reporting also stated that the number of problem gamblers and addicts would rise since the market's opening.
However, according to the LADIS interim report published in March, there was a 10% drop in the number of gamblers reporting to care facilities for treatment in 2021 and 2022, a continuation of the downward trend since 2019.
These examples reflect well what the online gambling dossier suffers from above all else: fear – and a severe lack of reliable and comparable data. After all,we come from a situation where there were virtually no hard figures available. By necessity, estimates, samples and extrapolations were used about, for instance, calculating participation in online gambling or the amount of money involved in online gambling. In retrospect, these estimates always turned out to be too inaccurate and a considerable underestimation.
Gradually, fortunately, the picture is changing. In fact, licensed operators must record all gambling transactions in a central database with the regulator. This way, more and more information becomes available to the KSA and, as a result, the insight into the legal sector increases. Full insight into the sector, however, we unfortunately never get.
After all, the countless elusive illegal online operators do not reveal their secrets. What is certain is that gamblers in illegality are repeatedly exposed to high risks and – as Follow The Money recently showed – they often face organised crime there. How many gamblers participate in illegality and how much they gamble there can only be approximated by conducting regular consumer research. To this end, the Online Gambling Barometer was launched in 2021: an annual consumer survey conducted by IPSOS.
Clear tasks lie ahead for all stakeholders to make licensed offers even safer and protect online gamblers even better from danger.
From the Barometer 2023, published in May, it emerges that the illegal market is indeed declining further in favour of legal operators. Dutch people also saw fewer gambling advertisements. The overall number of at-risk players is stable, although a slight increase can be seen among young adults. In addition, consumers feel that gambling companies have an important role in preventing problems.
Clear tasks lie ahead for all stakeholders to make licensed offers even safer and protect online gamblers even better from danger. Licensed gambling providers take responsibility and are happy to further fulfil their duty of care. Incidents must be prevented as much as possible.So, in short, the encouraging news is that a large proportion of consumers choose protection, fair play and prefer to gamble where addiction prevention is well regulated. A success for legislators, a windfall for taxpayers and a reassurance for online gamblers.
Seen in this light, gambling legislation has therefore, for the time being, succeeded and not ‘failed’, as one despondent MP recently exclaimed. In this respect, facts and figures could speak a bit louder – and emotions or the underbelly a bit less often.
