New KSA President backs ‘Globalised approach’ against Black Market threats

Michel Groothuizen has delivered his first address as Chairman of Kansspelautoriteit (KSA), the Netherlands’ Gambling Authority, opening the iGB Live, Amsterdam Conference (16-19 July).

Beginning his tenure as KSA chairman on 1 July, Groothuizen told delegates: “I am probably entirely new to you, the gambling market is not entirely new to me,” referencing his casework in 2015 with the Ministry of Justice to establish the KSA as Dutch gambling’s new authority.

“A lot has happened since I worked on the file and so there is still a lot for me to learn. I look forward to the conversations I will have today and in the future with gambling operators, international regulatory colleagues, legislators, and regulators, among others, many of whom I am sure are already here.”

KSA demands higher Duty of Care standards 

Groothuizen takes charge of KSA as Dutch authorities and a new government continue to amend the Remote Gambling Act (KOA), the legislative framework, which launched the Netherlands online gambling marketplace as of 1 October 2021.

As President, Groothuizen cited that he would continue the mandate of predecessor Rene Jansen to ensure Dutch gambling consumers are protected by higher duty of care standards, tougher enforcement against unlicensed operators, and by applying stringent regulations.

“Today, as befits a good regulator, I will do no differently. I would be happy to discuss with you how the Authority (KSA) will further scale up its supervision of the online duty of care in the coming year, and how we have already made an initial foray into this with the new policy rule.

“Of course, I also see the threat of the increasing number of laws and regulations and the impact on channelisation, so the market for illegal gambling will also be considered.”

Fighting Pirates 

Addressing a global iGaming audience, KSA’s new President did not hold back on his view of ‘unlicensed operators’ branded as the “pirates of the industry, who moreover, don’t seem to shy away from anything”.

The damning view is formed by Groothuizen citing cases of unlicensed operators targeting Dutch underage audiences, falsifying the KSA logo on campaigns, and “surreptitiously advertising via Google Maps and ads targeting the very vulnerable group of players registered in the national exclusion register (CRUKS). That simply beggars belief.”

KSA requires greater advocacy to tackle black market operators, in which Groothuizen will plead with Dutch authorities to grant KSA direct powers to shut down websites and block financial transactions. Yet, KSA fights against unlicensed threats of a globalised iGaming market, in which Groothuizen views collaboration as the best protection.

“Tackling illegal gambling does not stop at the border. That is why it is important not to let our supervision stop at the border either.

“Through international cooperation and knowledge-sharing, we can better tighten the net around illegal gambling. We do this, for example, through our participation in the Gambling Regulators European Forum (GREF) and the International Association of Gaming Regulators (IAGR). My predecessor played an active role there, and I definitely intend to do the same.”

Progress has seen KSA sign MOUs with regulators from Belgium, France, Malta, Sweden, and the UK to enhance cooperation by enabling data and information sharing, joint enforcement actions, and the adoption of best practices in tackling illegal gambling and ensuring responsible gambling practices. 

MOUs provide a platform for European regulators to improve operational collaboration, policy development, and enforcement efficiency against black market threats. 

Standing by mandatory limits and real-time supervision

Yet, Heightened supervision of unlicensed activities should not impede a tougher regulatory approach and standards for regulated markets. As such, Groothuizen backs new KOA measures from 1 October that will impose mandatory monthly deposit limits of €350 and €150 (under-25 account) as means to “end gambling excesses as soon as possible.”

Of significance, KSA will demand the real-time monitoring of customer care engagement: “With the introduction of a financial deposit limit, a big step has been taken to prevent players from incurring large losses. When depositing a certain amount, a player must show that he can afford it before he can continue playing.”

The Authority is taking another important step by being stricter on ‘real-time’ monitoring of gambling behaviours. Groothuizen concluded: “We will keep pushing this in our discussions with the secretary of state. We are keen on the regulations around advertising that have already been introduced and their effectiveness.

“In our latest survey on the state of the online market, I saw that the ban on untargeted advertising has resulted in non-gamblers being less likely to visit a gambling website. I look forward to seeing if we can draw the same conclusion again in our next report in the autumn, because that says something about the effectiveness of the legislation.”