Sports Betting Regulations in the Netherlands

The gaming sector in the Netherlands is undergoing a transformation. According to https://footballcitizens.com, the legalisation of online sports betting in 2019 has shattered the state monopoly structure, creating a favourable environment for the industry to grow. The current market is valued at €200 million, and by 2025 this figure will be almost €500 million.

The expansion of the Dutch market points to the need for regulation to protect the rights of players, to counter illegal activities and money laundering, and to maintain fair competition.

The article focuses on the legal regulation of online betting in the Netherlands, the role of the Kansspelautoriteit (KSA) in licensing platforms. It will also touch on betting accessibility, tax policy, market dynamics and responsible gambling principles.

Regulatory Framework for Online Betting in the Netherlands

Kansspelautoriteit (KSA) is the gambling authority in the Netherlands, founded in 2012. As an independent regulator, it monitors the legality and safety of entertainment in the country. Among the main tasks of the KSA are:

• Regulation of all aspects of gambling;
• Issuing licences to casinos, lottery organisers and sportswedkantoor;
• Ensuring the safety, fairness and transparency of the gaming market;
• Preventing illegal and fraudulent practices;
• Prevention of gambling addiction.

Process of Obtaining a Licence for Online Betting Operators

Obtaining a licence from the Kansspelautoriteit (KSA) is a complex process that requires betting platforms to meet strict standards. The procedure can be divided into several stages:

• Application Submission. Operators must submit a package of documents that provides complete information about the company, including history, structure and management, financial answers, and a description of the technical infrastructure.
• Verification and evaluation. After submitting an application, the KSA carries out a analysis to assess the reliability and transparency of the company’s financial activities, the quality and safety of technical systems and processes, the company’s ability to comply with the rules of responsible gaming and to protect the interests of players.
• Decision making. The KSA analyses the information submitted and makes a decision on whether to issue a licence within 6 months.
• Issuance of a licence. If all requirements are met and the company has successfully passed the inspection, the KSA will issue a licence that allows online betting to be legal in the Netherlands.

Obtaining a licence is only the beginning. Licensees are subject to regular monitoring by the KSA to ensure compliance with rules and standards, especially in relation to financial stability and responsible gaming.

Regulation of Access to Online Betting in the Netherlands

Access to online betting is strictly regulated to ensure responsible and legal participation in gambling. The laws are aimed at protecting users and curbing illegal activities of companies.

Persons who are authorised to bet on sports are:

• Reached the age of 18;
• Opened a gaming account in your name;
• We went through the KYC procedure.

Registration & Verification Process

A licensed betting platform is required to make predictions on a licensed betting platform:

• Creating an account. During the registration process, you need to fill out a questionnaire that asks for personal data: Full name, date of birth, residential address, phone number, email, as well as login and password.
• Verification. All users without exception present documents confirming their identity. The procedure is aimed at screening out minors and preventing fraud.

Restrictions and Player Protection Measures

To guarantee security in the online betting industry, the KSA is developing measures to protect players. They are aimed at preventing gambling addiction and negative social consequences:

• Minimum age. Strictly 18 years of age or older may participate in betting.
• Financial limits. Betting platforms monitor player behaviour and set limits on deposits and bets where necessary.
• Prohibitions. Professional athletes and referees are not allowed to participate in betting. Also restrictions are imposed on persons who are registered in the self-exclusion system.
• Setting deposit limits. Players can independently control the amounts they deposit. All licensed platforms provide tools to limit the finances spent on the game.
• Support and counselling. Access to information and support resources for players who have experienced gambling addiction.

Monitoring and support from regulators and specialist organisations provide assistance to support responsible gambling behaviour.

Taxes and Charges in the Online Betting Industry

The tax system is an important tool for regulating the online betting industry in the Netherlands. It provides both revenue collection for the state and control over the activities of betting platforms and players.

In 2023, new tax rules are introduced for the online betting sector:

• For operators. 29.1% tax on GGR (Gross Gaming Revenue) and 5.5% tax on the amount of bets.
• For players. 30.1% tax on winnings.

The taxes collected are channelled into social and cultural projects. Approximately 50% of revenues are used to develop and support professional and amateur sports. Another 25% is used to support cultural initiatives and the same amount is allocated to programmes for the prevention and treatment of gambling addiction.

Online Betting Market Dynamics in the Netherlands

The Dutch online betting market is represented by local and international betting operators. Among them are British, French, Belgian and other companies. The leading positions are occupied by:

Online Betting Market Development Trends

Several key trends can be recognised in the development of the Dutch betting market:

• Moving to an online format due to the increasing availability of the internet;
• Expansion of the mobile betting sector as a result of the declining cost of handheld devices;
• Increased competition due to the entry of international companies into the market.

The betting industry is showing steady growth due to the popularity of interactive gaming, the prevalence of gadgets and the internet. New betting platforms are predicted to enter the Dutch market, which will lead to stiffer competition and innovation.