Netherlands Prohibits Online Slot Machines

Netherlands legislators have decided to prohibit internet slot machines.

The Netherlands’ legislative body cast their ballots this afternoon (April 16th) to outlaw online gambling advertisements and “high-risk” internet gambling, including slot machines.

This resolution implies that the Netherlands’ Parliament has secured a majority vote in favor of outlawing all forms of targeted advertising and slot machines, which are classified as “high-risk” games.

The Dutch gambling publication Casino Nieuws initially reported on the proposal being presented to the Netherlands’ Parliament today.

Both proposals were put forward by Socialist Party MP Michiel van Nispen and received “sufficient” backing to secure a majority vote. Proposals related to mandatory financial risk assessments and verification for gambling were also approved.

In total, the Parliament deliberated on 114 proposals submitted last week during numerous discussions. Of these proposals, 14 were from previous discussions on gambling, with 10 being adopted. This encompassed lawmakers voting to outlaw all online advertisements, prohibit “clearly high-risk” gambling games, and make credit checks compulsory.

A prior proposal to outlaw gambling advertisements was not supported.

In the month of February, 2024, a suggestion by Dirk Boswijk to completely forbid gambling promotions was unsuccessful in the legislative body. This week, a similar suggestion by Social Democratic Party member Michiel van Nieuwenhuizen was accepted by a small majority of 77 votes.

The new prohibition will supposedly forbid all types of online promotions, including all targeted advertisements.

This prohibition follows a ban on non-targeted promotions that came into effect in the Netherlands on July 1, 2023. Mass promotions on radio, television, public spaces, and printed materials have been prohibited, and sports sponsorships are also included in the prohibition. A transitional period for existing sponsorship agreements is currently in progress.

Netherlands prohibits online slot machines
Another suggestion by Van Nieuwenhuizen focused on “online gambling with a clear high risk.” The Social Democratic Party believes that games of chance, such as online slots, should be prohibited because “participants cannot control the outcome of the game.” A majority of the 79 members of the legislative body voted in favor of the suggestion.

Although a majority of the House of Representatives supports the prohibition, additional procedures are required to formally enact it into law. The Dutch Minister of Justice and Security, Franc Weerwind, will now be responsible for reviewing and approving the law.

Wilfred has consistently been a staunch supporter of accountable gaming. Nonetheless, he has never clearly expressed a yearning for stricter regulations.

Wilfred revealed fresh measures in December 2023 to safeguard players. These measures entail compelling operators to contact players who have established a €350 (£303/$386) deposit cap. Operators are also obligated to inform such players of the hazards associated with wagering such substantial sums.

As CasinoNieuws reported at the time, Wilfred’s other proposals encompassed displaying amounts in euros and advocating for further investigation into comprehensive game limitations.

Wilfred also unveiled a multi-year digital resilience campaign to combat fraud linked to online gambling, which commenced in October 2023.

“Anyone who desires to do so should be able to participate in a game of chance responsibly,” Wilfred stated in a letter at the time. “But responsible gambling can morph into problematic gambling.”

“Players must be cognizant of this and shielded. The current situation is inadequate. Research reveals that providers encourage players to wager more than they can afford to lose.”

The peril of reverting to the illicit market
Undeniably, if such a prohibition were to take effect, it would have a substantial detrimental impact on the regulated industry. This would also encompass the impact on national income. The revenue generated by the online casino industry substantiates this.

The Netherlands Gaming Authority (KSA) recently issued a report that showed online casinos now make up a significant portion of the nation’s total gambling income.

If online slot machines were prohibited, it would likely result in the return of an uncontrolled market. As the case of Germany illustrates, this would lead to a rise in illegal operators.

This would be disastrous for the success of the regulated Dutch market. When the market was re-regulated in 2021, the KSA aimed to ensure that a large majority of the market share was controlled by licensed operators within a short period. Currently, it is estimated that the channeling rate of players and web traffic is high, making it one of the most successful markets in Europe.

In contrast, Germany faces significant obstacles due to excessive regulation. As iGB previously reported, a study by the University of Leipzig warned that a large portion of online gambling in Germany still takes place with unauthorized operators.

The study was commissioned by the German Online Casino Association (DOCV) and the German Sports Betting Association (DSWV). It revealed that almost half of German players use unauthorized websites.

The study estimated that the black market generates a large portion of online revenue, costing the state a significant amount of money in lost tax revenue each year.