Dutch report finds KSA capacity “too limited” to tackle illegal gambling
The government-commissioned report assesses the KSA’s preparation for the launch of regulated online gambling.
The Netherlands.- A report commissioned by the Dutch government has found that the capacity of the Netherlands’ gambling regulator Kansspelautoriteit (KSA) was “too limited” to deal with illegal online gambling adequately. It said that stakeholders feel the regulator should do more.
Conducted by the consultancy Kwink Groep, the report assesses the KSA’s activity between 2017 and 2021, which coincided with the run-up to the launch of regulated online gambling in October last year. It found that while the KSA has devoted enforcement resources to eradicating illegal online gambling, many stakeholders believed it should do more to stop unlicensed operators.
It said: “The KSA’s enforcement actions focused on illegal online offerings. Nevertheless, market parties and various government organisations believe that combating illegal supply still receives too little attention.”
The report noted that those in the licensed market felt that providers in Malta and Curaçao, for example, still had space to offer their services in the Netherlands without a local licence. It suggests that further action could involve the use of payment and website blocking.
“They believe that the KSA could and can do more about this, for example by urging telecom companies to shut down illegal websites or payment service providers not to provide payment services to illegal providers,” the report reads, adding that “providers believe that the KSA still makes too little use of this option.”
However, the report found that a reason for this was the lack of resources. It said: “Various licensed parties find it strange that they paid a gambling levy but received ‘little in return’ in the form of guidance from the KSA.”
It adds: “The KSA acknowledges that the capacity is too limited and that if the enforcement capacity is expanded, more can be done to tackle illegal gambling practices and undermining.”
However, the report did not directly recommend giving the KSA more resources. It also said that it was not always clear if the regulator was making the best choices on how to use its existing resources because “the processes to determine how to use its resources were not always clear”.
“It is understandable that the KSA had to make choices. It is important, however, that the KSA can properly substantiate and justify such choices,” it said.
Recommendations for the KSA
The report made three recommendations on what the KSA should prioritise. It said it should strengthen risk-based supervision procedures, improve how it monitors the use of supervisory tools and make more use of data to inform its decisions.
The KSA said: “The KSA is already working concretely on strengthening risk-based supervision. The first results of this are visible, but the KSA’s ambition goes further. For example, a KSA-wide structure is being set up to continuously identify, qualify and prioritise risks. The KSA will also involve its stakeholders more in the assessment of risk, for example, with the Supervisory Agenda 2023, which will be published early next year.”
KSA chairman René Jansen said: “The evaluation gives the KSA good recommendations on how it can improve its effectiveness and efficiency. They fit in particularly well with the professionalisation that the organisation has already started.
“The challenge now is to formulate what further steps the KSA will take in the coming period towards supervision and enforcement based on data.”
Gaming Corps wins KSA approval
Sweden’s Gaming Corps has received approval from Dutch regulator Kansspelautoriteit (KSA) to launch its games in the country. The online content developer will be able to offer its table and slot content along with its plinko, mine and crash games. The company also has a licence from the Malta Gaming Authority.
This week, the KSA reported that it had to have words with several licensed gambling operators over advertising during the FIFA World Cup. It said it had found operators breaching marketing rules by advertising on sites offering free-to-play prediction games for the tournament in Qatar.
Meanwhile, the regulator has ordered online gambling operators to cease offering cashback bonuses. It says such offers are banned under Dutch law because it is believed that they promote excessive participation.
