Dutch Remote Gambling Act Evaluation Reveals Gaps in Consumer Protections
A recent evaluation of the Netherlands’ Remote Gambling Act (KOA) reveals significant shortcomings in safeguarding consumers and vulnerable groups. The study, commissioned by the Dutch House of Representatives, highlights concerns about responsible gambling practices and regulatory challenges faced by the Dutch Gaming Authority (KSA).
Assessment of KOA’s Objectives and Shortcomings
The Research Agency for Justice and Security’s ‘WODC Report’ delivers a critical review of the Remote Gambling Act (KOA), which was established in October 2021 to regulate online gambling in the Netherlands.
Although KOA has succeeded in providing a legal alternative to unlicensed gambling, the report questions its effectiveness in fostering a “responsible, reliable, and verifiable” gambling environment. The act’s “open mechanism” allows numerous operators to enter the market, potentially compromising the prioritization of player welfare in a competitive landscape.
Concerns over the “Normalisation of Gambling”
The report highlights concerns regarding the increasing normalization of online gambling, especially among young adults. Statistics indicate that since KOA’s implementation, 70% of online gamblers began participating in legal gambling, with a significant 80% rise in young adult gambling accounts compared to 2021.
Challenges in Enforcing Duty of Care
KOA’s broad interpretation of duty of care has led to inconsistencies in how operators implement consumer protections. As cited in the report, “The duty of care consists of open standards that are interpreted differently by providers.”
Additionally, financial motivations may conflict with the duty of care, as operators focus on player engagement. This lack of uniform standards has raised concerns that operators are not adequately suited to ensure the safety of high-risk players.
Regulatory Challenges Faced by KSA
The Dutch Gaming Authority (KSA) confronts numerous obstacles in supervising online gambling effectively. Privacy and jurisdictional constraints limit the authority’s ability to monitor interactions on licensed platforms.
Furthermore, KSA’s struggle to curb illegal gambling underscores the need for broader enforcement tools. Currently, high-risk players can bypass protective measures by shifting between providers once they reach betting limits, weakening the intended safeguards.
Recommendations for KOA Reform
The report calls for several reforms, including cross-platform gaming limits, stricter advertising regulations, and expanded enforcement powers for the KSA, such as the capacity to block unlicensed providers at the DNS level.
Enhanced collaboration with addiction specialists is also recommended to create comprehensive prevention strategies, as current cooperation with gambling operators has faced hesitancy and trust issues among addiction experts.
Future Policy Directions
Secretary of State for Legal Protection, Teun Struycken, has responded to the evaluation by suggesting potential adjustments to KOA’s duty of care requirements through policy changes.
There is speculation that this may lead to stricter regulations on high-risk games, with particular attention to online gaming machines.
