Dutch licence appetite supressed by almost three-quarters as regulatory reality bites
Regulator confirms just 35 licences set to be issued in October despite 125 operators previously expressing interest
The Dutch Gambling Authority (KSA) has revealed it expects to issue just 35 online gambling licences to operators targeting the Dutch market in October 2021.
The KSA revealed the figure as part of its 2020 annual report into the state of the Dutch market and its work over the previous year.
It marks a significant reduction from the 125 expressions of interest received by the KSA when it asked operators to register their desire in obtaining a licence in June 2019.
A potential factor in the decline in interest may be the implementation of an active operator tax on all Dutch operators whether they be licensed or not.
A second issue affecting operators serving the Dutch market is proposals to bar them from using player databases gained during the unregulated market in the newly regulated arena.
Confusion surrounding the so-called cooling-off period, by which previously sanctioned operators might expect to receive licences, may also be supressing the appetite.
Operators expected to enter the Dutch market include Entain, Kindred Group, Betsson and 888.
Dutch-licensed operators will be subject to a tax rate of 29% on their respective gross gambling revenue, which is one of the highest taxation rates in Europe, as well as a 1.75% problem gambling levy.
It is understood the KSA began mapping out the licensing process last year, as well as beginning the construction of the CRUKS national self-exclusion scheme and centralised control database, both of which are a requirement of licensing.
The regulator had previously committed to expanding its licensing arm to deal with an expected influx of applications from operators looking to enter the country.
The new department was to be staffed by existing employees, but also by a number of temporary staff hired and trained by Dutch regulators to process the applications.
It has also warned that incomplete applications would be denied or subject to longer timescales than the projected processing period of six months.
In a recent forward-looking report into the Dutch market, the KSA revealed it was aiming to achieve a channelisation rate of 90%.
The KSA has said the Dutch online gambling market could be worth €1.1bn (£957m) in 2024, based on estimates provided by H2 Gambling Capital.
However, separate estimates provided by Regulus Partners of both the legal and illegal markets are slightly lower at €827m in 2024, a disparity due to the absence of bonuses.