Consultant view: Preparing for the Netherlands compliance challenge

The wait for the Netherlands to introduce a new regulatory framework has been one of gaming’s longest-running sagas, but it appears the final stretch is, at last, in sight. At the start of the summer, the head of the Dutch Gambling Authority (KSA) René Jansen said that he expects the new framework to be live by January 2021. Demand for a Netherlands licence is likely to be overwhelming, as the KSA has said more than 180 companies have formally expressed an interest.

Those who do successfully launch in the newly regulated market at the start of 2021 will be held to some of the highest standards we have seen to date. The KSA has already released what it describes as ‘Duty of Care’ guidelines in the form of 10 recommendations for operators looking to acquire a licence.

These include deposit limits, exclusion of minors, self-exclusion and the training of staff to better identify problem gamblers. This may appear fairly standard protocol for a regulated market, but the suggestions are that the KSA will both be building out and strictly enforcing these guidelines.

The Swedish precedent

One only needs to look at recently regulated Sweden for an idea of what this could mean. The strength with which the Swedish Gambling Authority has enforced similar measures has taken many operators by surprise; many have been on the receiving end of heavy fines as a result, and one has even lost its licence.

There will be fewer excuses by the time the Netherlands’ new framework goes live. It is clear that across Europe there has been a sea change in attitudes towards the responsibilities of gambling operators.

This has manifested itself in several ways in different markets: television advertising bans; tougher KYC, AML and responsible gaming obligations; and stricter rules around bonusing. What is consistent across many of these markets, particularly those which have recently or will soon introduce new regulatory frameworks, is that paying lip-service to compliance issues is no longer enough.

Preparing for the Netherlands

For those operators and suppliers who are serious about grabbing significant market share in the Netherlands in 2021 and beyond, the good news is they have some 18 months to prepare. But delivering an appealing product while remaining compliant will require a radical new approach to what many are used to.

For many years and across many markets – particularly those which were the first to introduce new frameworks in Europe as part of the shift away from the dotcom model – compliance has been treated as an unwanted obligation. The result has been a reactive approach: wait for something to go wrong, and then do your best to correct it. As Sweden has shown, this is no longer enough. Fines are growing and the threat of losing one’s licence is now very real. Every indication is that the Netherlands will follow this example.

So, compliance needs to be built into the very core of your business. This means upskilling your team across the board, so everyone is familiar with the compliance implications of their actions. Whether it is the development of a new product or rolling out a marketing campaign, worrying about compliance after the fact simply will not fly. It could cost your business a lot of money or even a licence.

Instead, compliance needs to be a starting point. When developers and marketers are familiar with the rules, they will be able to create innovative products and campaigns that comply from the outset. This is the challenge for those who want to succeed in the Netherlands, and with the 2021 launch date fast approaching, the race is on.

Antonio Zanghi is an online gambling compliance expert with years of experience in the field. He has previously worked at IGT where he was involved with both regulatory and technical compliance, successfully managing compliance in the Canadian and European regions. He now runs Maxima Compliance, a full-service compliance consulting firm supporting online gambling businesses.