Netherlands: KSA intervenes on sponsorship violations

The Dutch gaming regulator identified issues with three companies that failed to comply with new industry standards.

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Key points:

- A recent rule change restricts gambling sponsorships to sporting events only, banning the targeting of minors/young adults

- The KSA found three providers violated these rules through lapsed agreements, improper event activation and children's merchandise

- Further violations could lead to enforcement actions by the KSA

In a move to enforce new regulations on gambling sponsorships, the Gaming Authority (KSA) has reprimanded three providers for incidents involving improper advertising and targeting of vulnerable groups.

Since 1 July 2024, there have been new rules restricting gambling sponsorships in the Netherlands. Providers are now only permitted to sponsor sporting events and are prohibited from targeting minors and young adults with their sponsorship content.

Additionally, responsibility for compliance lies with the gambling providers, even when third-party organisations are involved.

The first case involved a gambling provider whose sponsorship contract for a national event had expired. The event organiser, however, continued to display the provider’s promotional materials, breaching the post-July restrictions. Following a warning from the KSA, the provider acted quickly to have its logo removed from all materials.

Good to know: Providers are fully responsible for their sponsorships, even with third-party organisers and vendors

The second incident concerned sponsorship at a sporting event where young people participated in activities at the location prior to the main event. This caused the provider’s branding to be visible to a younger, vulnerable audience. The KSA clarified that it remains the provider’s responsibility to prevent advertising from reaching these groups, even indirectly.

In the final case, a sports webshop sold shirts featuring a well-known athlete’s sponsor logo, including in children's sizes. The provider responded by ensuring that children’s sizes no longer carried its logo.

The KSA emphasized that providers are ultimately responsible for their sponsorship activities, even when working with external partners.

As such, providers must make clear agreements about the use of sponsor materials, placement of ads and target audience, and they are expected to monitor third parties to ensure compliance.

While the KSA has so far only issued warnings, the regulator warned that further violations could result in enforcement action.

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