KSA chair says Dutch gambling operators seeking to strengthen competitive position 

René Jansen has commented on the maturation of the Dutch igaming market.

The Netherlands.- KSA chair René Jansen says the Dutch gambling market has reached a logical maturity and that he expects few new applications for gambling licences next year. He noted that companies are seeking to strengthen their position through mergers and acquisitions.

Writing in a blog for the Dutch gambling regulator, Jansen noted that the KSA was swamped with applications in 2021 ahead of the opening of the regulated online gambling market. The flow of applications continued until “just ahead of the expiry of the leniency scheme” in 2022.

In that period one-third of applications were approved. This year, however, the number of applications fell considerably and Jansen expects that tendency to continue in 2024. 

Jansen noted that there had been a spate of licensees applying to expand their gaming offer to include further categories. He also noted the impact of mergers and acquisitions, with several mergers among smaller operators and acquisitions by larger companies. He noted that investment firms and larger foreign companies that didn’t have a presence in the Netherlands, or who had failed to gain licences,  were also making acquisitions.

Jansen said: “In terms of takeovers, we see from the questions asked that small licensees are joining forces and moving to strengthen their position and that larger licensees are taking over smaller licensees to get ahead of the competition.”

Jansen noted that foreign operators seeking acquisitions were particularly interested in acquiring operators that have experience in how to meet Dutch regulatory requirements such as compliance with the Control Database (CDB). The KSA last month warned that Holland Casino could lose its licence over continued failures to comply with this requirement.

He said: “This development, from applications to mainly changes, shows that the market is starting to reach a certain degree of maturity. It is no longer so much about conquering a position but mainly about strengthening the competitive position and increasing market share.”

He added: “That is a logical development in a relatively young market, but one that we are closely monitoring. After all, a major competitive push can also cause providers to pay less attention to crucial aspects such as duty of care. However, that attention should never slacken.”

Jansen is to conclude his stint as chairman of KSA on July 1 next year.