The Netherlands gambling regulator (Kansspelautoriteit/KSA) has reminded operators that untargeted ads are no longer permitted. The warning comes in the wake of a recent violation that forced the KSA to intervene.

According to the authority, a licensed gambling company had aired an untargeted ad during a TV game show. While the Netherlands has yet to fully prohibit TV sponsorships, there are some strict restrictions, that this operator violated.

For reference, the Netherlands banned untargeted advertisements last year and is set to disallow TV sponsorships from July 1, 2024. Then, a year later, the country also plans to ban gambling sponsorship contracts in professional sports.

The gradual crackdown on gambling advertisements and sponsorships takes in mind gambling companies’ existing deals and provides them with ample time to prepare for the changes. However, the KSA continues to detect certain violations from time to time.

The crackdown on advertising seeks to combat the concerning problem gambling rates in the country and protect minors and vulnerable groups from exposure to gambling content.

The KSA Asked the Operator and TV Program to Fix the Issue

Commenting on the current case, the KSA explained that the advertisement in question failed to meet the conditions for TV program sponsorships. According to the authority, such sponsorships mean that an operator’s logo is allowed to appear neutrally during broadcasts.

However, the TV program in question also featured a game element involving a fruit-themed slot. The KSA emphasized that it does not believe this to be a “neutral expression.”

The KSA added that it contacted the operator and the TV program in question, addressing the matter. As a result, the game element was adjusted, the regulator concluded.

The current warning comes a month after the KSA launched a probe into slot machine arcades. In December, the authority warned that supervisors will carry out checks on compliance with the requirements of addiction prevention, ensuring that arcades do not violate the rules.

In the meantime, the KSA prepares for a major leadership change this year as René Jansen, its current board chairman, reached retirement age and decided not to renew his term.

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The Netherlands will proceed with its plans to restrict gambling advertising. The harsh measure was announced by Frank Weerwind last summer, with the minister planning to ban the first set of ads on January 1, 2023. However, the ban was eventually delayed because of public consultations regarding the law.

Now, Weerwind has announced that the ban on untargeted gambling ads should happen by July 1. As a result, the other planned bans will also be delayed. Thus, TV program sponsorships should be banned from July 1, 2024, with sports sponsorships to follow on July 1, 2025.

Weerwind added that if the ban on untargeted ads is further delayed, the other two bans will also be postponed accordingly. This will provide operators, TV companies and sports teams with enough time to prepare.

Weerwind made his statement as a response to questions from other parliamentary members. However, the minister added that he is against the idea of suspending an operator’s license after two violations have been identified.

Weerwind Opposes the Two-Strikes-You’re-Out Model

The Netherlands, known for its strict gambling regulations, is bullish on protecting the youth from being bombarded with gambling content. A survey from a year ago proved that young adults are exposed to tons of ads, while minors still encounter promotions on TV and radio.

In the wake of such concerns, Dutch lawmakers proposed restricting gambling ads and temporarily suspending the license of big-time offenders. Under the proposed two-strikes-you’re-out model, the Netherlands will be able to temporarily suspend operators if they commit two or more offenses and promote to young people.

However, Weerwind said that the rules should be enforced proportionally. In addition, the minister noted that the local regulator should be able to correct its licensees’ mistakes once they have been identified.

Weerwind noted that conversation often leads to compliance. He said that the regulator is also able to impose periodic penalty payments when necessary and, if a violator still fails to comply, further fines can be imposed.

Weerwind added that the Kansspelautoriteit can also prevent payment providers from accepting payments from incompliant companies – a measure that he believes is much better than a two-strikes-you’re-out model.

Overregulation Allegedly Does More Harm than Good

While the Netherlands continues to be keen on regulating the online gaming market, some have suggested that overregulation might have adverse effects.

In a recent letter to the Dutch House of Representatives, affiliate companies claimed that certain bans encourage customers to play with illegal operators. Since offshore companies rarely offer the same safeguards that their licensed counterparts do, channeling players toward the black market can be very dangerous, the letter said.

The affiliates asked the government to rethink its stance on certain sports betting markets that are currently prohibited in the country.

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