Peter-Paul de Goeij, director of the Netherlands Online Gambling Association (NOGA), is calling for a “rigorous” response from Kansspelautoriteit (KSA) after research revealed that illegal operators are allowing minors to gamble. The findings, shared by Keurmerk Responsible Affiliates (KVA) and Licensed Dutch Gaming Providers (VNLOK), highlight a significant issue within the Netherlands’ gambling industry.

Research Findings on Underage Gambling

The research conducted by KVA uncovered that minors in the Netherlands can easily gamble with offshore operators. The study showed that these operators do not require the necessary age verification, allowing anyone with an email address or telephone number to create an account. This lack of oversight enables those below the legal gambling age of 18 to deposit and gamble, often using cryptocurrency for anonymous transactions.

Further, the study found that illegal casinos use the logos of banks and legal operators to mislead minors into believing that their deposits are safe. This practice is particularly concerning as it exploits the trust and security associated with these financial institutions.

Previous Research and Industry Concerns

KVA’s recent findings build on previous research from 2023, which indicated that illegal sites were targeting players attempting to bypass Cruks, the Netherlands’ self-exclusion scheme. This ongoing issue highlights the need for stringent regulatory measures to protect vulnerable groups from the risks associated with illegal gambling.

De Goeij emphasized the heightened risks for underage gamblers, noting their increased susceptibility to addiction and related mental health and financial problems. He urged the KSA to take decisive action to address these issues and fulfill its mandate to protect consumers.

“The Kansspelautoriteit (KSA), the Dutch Gambling Authority, is expected to address these issues rigorously,” De Goeij told iGB. “The KSA is likely to enhance monitoring and enforcement actions against unlicensed operators, imposing hefty fines and blocking access to these websites. Educating the public, especially minors and their parents, about the risks of unlicensed gambling and how to avoid these sites can be an effective preventive measure.”

Recommendations for KSA Action

De Goeij advocates for increased collaboration between the KSA and other jurisdictions, sharing intelligence and best practices to combat illegal operators. He also suggests that the KSA should work closely with financial institutions to block illegal transactions and cut off revenue streams to offshore operators.

“The KSA should employ advanced technologies like geolocation blocking and AI-driven monitoring to detect and shut down access to offshore gambling platforms,” De Goeij added. “Working with internet service providers (ISPs) to block unlicensed gambling sites could significantly reduce access.”

Broader Issues in the Dutch Gambling Market

The timing of KVA’s research coincides with growing industry concerns over regulatory changes in the Netherlands. Recently, a coalition agreement proposed increasing the gambling tax from 30.5% to 37.8%, aiming to generate an additional €202m in tax revenue. NOGA has expressed concerns that such measures could push operators towards the black market, undermining the regulated market’s integrity.

Earlier this year, the house of representatives voted to ban “high-risk” gambling, including online slots, and to prohibit online gambling advertising. These regulatory changes, combined with higher taxes, could drive more players to unlicensed sites, where consumer protections are minimal.

De Goeij is particularly worried about the potential impact on the legal market, warning that higher taxes and advertising restrictions might reduce revenue for the Dutch government and legal operators. This shift could lead to increased fraud, addiction, and other harms associated with unregulated gambling.

NOGA’s Strategic Recommendations

To combat the potential rise of the black market, De Goeij recommends that the KSA and the government adopt evidence-based regulations that do not overly burden legal operators. He believes that encouraging innovation and improving customer experiences in the legal market can help retain and attract players.

“The KSA and the government should encourage innovation and better customer experiences in the legal market to retain and attract players,” De Goeij said. “They should also be continuously researching market trends and player behavior to adapt regulations and strategies dynamically. Only by taking a proactive and balanced approach, the Netherlands can protect its citizens while maintaining a robust and attractive legal gambling market.”

Source: “NOGA urges rigorous KSA response after research finds illegal operators accepting bets from minors”. iGaming Business, May 23, 2024.

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The Pennsylvania Gaming Control Board (PGCB), the gambling regulator in the state, is currently tasked with monitoring the gambling sector and enforcing the established rules. Overseeing the operations of Pennsylvania’s online casino games, the regulator is also in charge of monitoring sports wagering, video gaming terminals and retail casino gambling.

On Wednesday this week, the PGCB announced it imposed bans against four adults after petitions filed by the Board’s Office of Enforcement Counsel. The bans come after the four adults were allegedly found to have left a total of six minors unattended in order to participate in gambling activities. Currently, it is prohibited for adults to leave minors unattended at hotels, parking lots or other areas adjacent to casinos in Pennsylvania.

Such actions are subject to criminal prosecution in the state. Moreover, whenever an adult is found to leave a minor unattended, they are added to an Involuntary Exclusion List. In other words, such adults are banned from casino gambling across the state.

The Gambling Watchdog Describes the Incidents

One female visitor of Live! Casino Philadelphia was banned after she left two minors, ages 10 and 13, in a car located at the parking lot of the venue. The children were left alone for 24 minutes while the woman gambled on slots at the casino.

On the other hand, another female patron was banned for leaving a 13-year-old unattended for 10 minutes in the Sky Bridge hallway at Mohegan Pennsylvania Casino. The visitor who gambled on slot machines was subsequently banned.

A male patron was banned from the state’s casinos after leaving two minors, aged 6 and 8 alone for 13 minutes. The children were left unattended in a car at the parking lot of Live! Casino Pittsburgh while the man gambled at slot machines.

Last but not least, another male patron was placed on the state’s Involuntary Exclusion List after he left a 1-year-old child unattended in a locked car at the parking lot of Valley Forge Casino Resort. The infant was left for 9 minutes inside the locked vehicle when the outside temperature was 84 degrees while the male patron gambled at a table game and a sportsbook.

Law enforcement arrived on the scene and broke the car’s window to extract the infant. According to the PGCB’s statement, the male later tried to flee the scene with his car where police uncovered illegal drugs. Besides his ban from casinos, he was also detained.

In addition to the four bans, the PGCB announced it approved a $40,000 fine against Mountainview Thoroughbred Racing Association, the operator of Hollywood Casino at Penn National Race Course. The fine comes after individuals under the age of 21 were allegedly able to access the gaming floor and gamble on three occasions.

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The gambling regulator in Victoria, Australia, the Victorian Gambling and Casino Control Commission (VGCCC), announced it implemented a major change affecting betting on sports with the participation of minors. On Thursday, the gambling watchdog unveiled that it will prohibit the offering of betting on all under 19 sports competitions. Additionally, the VGCCC said that it will impose a ban on bets involving the performance of athletes who are under the age of 18, regardless if they participate in open events along with seniors.

The new regulations are set to come into effect in 60 days. Licensed operators in Victoria, as well as bodies controlling major sports, will be able to use this period to change their policies and implement the new restrictions. According to the VGCCC, after the period, it will be considered an offense if an operator offers betting on events involving minors.

But what does the ban exactly encompass? Judging by details released by the gambling watchdog, the betting ban applies to all sporting events for under 19s, as well as sporting events where all participants are minors.

Effectively, the change will restrict betting companies from offering wagers such as “first player to take a wicket,” “most disposals,” or “first goal of the game,” for events with players that are minors. An exception to the general ban would be for open events where those under 18 may be playing along with seniors. In such cases, betting on minors will still be prohibited but wagers would be allowed for the team outcome.

The Gambling Watchdog Will Monitor the Betting Sector

VGCCC’s chair, Fran Thorn, commented on the ban saying that it is not acceptable for wagers to be placed on sports with minors. She acknowledged the need to protect minors, explaining that gambling “raises integrity issues, with the prospect of people attempting to influence how minors might behave playing sport.”

“The VGCCC is of the view that betting on contingencies in sporting events relating to the performance of an individual minor in that sporting event is contrary to the public interest,“

explains the Victorian Gambling and Casino Control Commission

Thorn said that the operator will remain vigilant and in the event of non-compliance, it will take definitive actions. Such can include prosecution of the betting providers and even license revocation, warned the regulator’s chair. She reiterated the set of rules that prohibit wagers on individual actions for minor athletes, explaining that bets would be allowed on the open team performance.

Last month, lawmakers in Victoria confirmed plans for the implementation of restrictions for electronic gaming machines (EGMs). The latest changes focus on restrictions such as mandatory pre-commitment limits, carded play and a significant decrease in load-up limits.

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Letting minors gamble could cost a pub in Melbourne almost AU$ 222,000 ($149,850) after the Victoria gambling regulator got tipped, investigated and charged the venue.

Six Occasions of Letting Gambling by Minors

The Victorian Gambling and Casino Control Commission (VGCCC) announced Friday that the staff at the Preston Hotel allowed a 16-year-old access to electronic terminals on six occasions last year – in May and September – which the minor used to place bets, reported The Guardian.

Glorija Kuzman, director for Gambling at the VGCCC, outlined that “all gambling operators – including venues and the holder of the statewide Wagering and Betting license – have an irrefutable legal requirement to do everything they can to stop children from gambling.”

“One of the most serious harms is minors gambling,” she said, deeply concerned with the violations.

The VGCCC charged the pub located in north-east Melbourne with 15 charges among which six counts of allowing a minor to gamble, six counts of failing to supervise its electronic betting terminals and three counts of allowing a minor to enter a gambling machine area – all carrying a maximum financial penalty of AU$221,904 ($149,785).

The Melbourne pub is not the only one charged for the violations as the watchdog also slapped charges on the holder of the statewide wagering and betting license, Tabcorp. Australia’s largest gambling operator is facing a maximum fine of nearly AU$104,000 ($70,200) over eight charges – four counts of allowing a minor to gamble and four counts of failing to supervise a gambling machine.

“We are very focused on managing the unique challenges of cash betting and continue to invest in this area to protect minors by stopping our equipment from being used in this way,” commented a spokesman for Tabcorp, adamant that the company is taking the matter seriously.

Urging the Public to Share Info on Possible Transgressions

The regulator also said other venues are also being investigated for similar offenses, urging the public to contact the watchdog and share information if they have witnessed occasions in which minors could have possibly gambled.

The charges against the Melbourne pub and Tabcorp is the latest enforcement action undertaken by the Victorian gambling watchdog which is not shy to enforce the regulations and slap huge fines on incumbents which are found to have violated the requirements.

At the end of last year, the VGCCC issued a fine of AU$1.35 million ($904,000) to the country’s major poker machine operator, Australian Leisure and Hospitality Group (ALH), for non-compliance with the Gambling Regulation Act 2003 related to the compulsory pre-commitment program YourPlay.

Earlier in the year, the watchdog penalized Crown Resorts with AU$80 million ($57.4 million) for allowing players at Crown Melbourne to use China Union Pay cards to make deposits between 2012 and 2016.

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