Wednesday, January 22, 2025
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HomeComplianceDutch regulator warns operators about sponsorship breaches amid calls for stronger safeguards.

Dutch regulator warns operators about sponsorship breaches amid calls for stronger safeguards.

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The Dutch gambling authority, Kansspelautoriteit (KSA), has issued warnings to three gaming businesses for violating advertising restrictions through improper sponsorships of sporting events

The decision demonstrates the Kansspelautoriteit commitment to strengthening control over gambling promotions in accordance with the Netherlands’ rigorous advertising laws, which were introduced last year to reduce exposure to gambling marketing, particularly among vulnerable populations.

KSA Issues Warnings for Sponsorship Violations

The KSA’s latest warnings highlighted cases in which operators violated rules on sports sponsorship exposure, affecting both promotional materials and branded items.

Although the KSA did not reveal the operators’ identities, it did detail each case to illustrate the infractions. One operator had expired sponsorship materials exhibited at a national event, which were promptly withdrawn following the KSA’s notice.

Another was warned for displaying logos in places frequented by young people, so unintentionally encouraging gambling to minors. The third operator’s logo was evident on children’s clothing at an online sports store, which was an obvious breach of the regulations. 

The crackdown on sponsorship violations is part of a larger campaign to implement the Netherlands’ 2023 prohibition on “untargeted” gambling advertising, which bars such adverts on television, radio, and in public places.

Although sports sponsorship is still a legitimate advertising outlet, it is strictly controlled, and the KSA has said that these sponsorships must not target or influence young or vulnerable audiences.


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Urgent Revision and Concern of Current Legislation.

While the KSA has taken efforts to assure compliance, a recent assessment by the Dutch government’s research office, WODC, warns that present regulation may not be adequate to safeguard Dutch players from the hazards connected with gambling.

The survey demonstrates an increase in gambling addiction rates, particularly among young persons, following the legalization of internet gaming in 2021.

According to the WODC, the licensing of gambling companies, which was designed to provide safer and more regulated choices for gamblers, has failed to meet expectations. Instead, the agency discovers that teenage gamers, a demographic that is most sensitive to gambling-related damage, are now facing greater dangers. 

According to the WODC assessment, many licensed operators have failed to provide enough support to persons seeking treatment with gambling difficulties. In a test conducted by researchers acting as gamblers, just six of 23 licensed firms provided assistance, while the rest routed them to promotional pages rather than support options.

The analysis highlights a crucial gap in duty-of-care requirements and asks whether gaming corporations, motivated by profit, can sufficiently protect player welfare.

Recommendations for Enhanced Regulatory Oversight

In light of these results, the WODC urges immediate changes to the present gaming rules. Key recommendations include centralizing duty-of-care regulations rather than enabling operators to self-regulate, boosting data availability for independent addiction prevention studies, and strengthening the Kansspelautoriteit capabilities to combat unlawful gaming.

The research also advocates for a shift in the Remote Gambling Act’s (Koa) primary goal from just “preventing addiction” to preventing all types of “gambling harm,” recognizing that gaming may cause financial, social, and psychological problems in addition to addiction. 

Furthermore, the paper emphasizes that unlawful internet gambling, which is predominantly run from outside, presents a substantial problem to the Kansspelautoriteit owing to jurisdictional limits. Strengthening enforcement against unlicensed sites, as well as regulating licensed operators, might lead to a safer gambling environment in the Netherlands.

Kansspelautoriteit has reiterated its commitment to regulating licensed operators while backing calls for tighter restrictions. It advised operators to form strong agreements with external parties to guarantee all sponsorship materials comply with advertising rules, especially with an absolute ban on all sports sponsorship scheduled to take effect in July 2025.

Source:

Online Gambling Laws Are Boosting Addiction Among the Young“, dutchnews.nl,

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Margaret
Margaret
With 5 years in the iGaming industry, she's passionate about creating engaging content and understanding market trends. Her experience covers a wide range of online gaming, from casinos to sports betting

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