🤡 Netherlands🇳🇱: the country needs cross-border cooperation to combat illegal gambling

🤡 Netherlands🇳🇱: the country needs cross-border cooperation to combat illegal gambling

The Kansspelautoriteit (KSA), the Dutch gambling authority, urges European countries to strengthen cross-border cooperation to combat the illegal gambling market, amid recent parliamentary debates on sector regulation.

In a blog post, KSA Chairman Michel Groothuizen summarized some of the main points raised during the parliamentary debate on gambling and highlighted the need for coordinated measures at the European level to address the international structures supporting the illegal market.

🔣 The problem

🔸 Groothuizen described illegal gambling as a problem of “unprecedented scale and complexity.”

🔸 According to the KSA chairman, the size of the global illegal gambling market exceeds the GDP of every country except the United States🇺🇸 and China🇨🇳.

🔸 He also noted that half of every euro lost by Dutch residents through gambling ends up in the illegal market.

🔣 Thesis 1: the offshore market is not an isolated phenomenon

According to Groothuizen, there is a public perception that offshore operators are simply established foreign companies that, taking advantage of the freedom of the Internet, occasionally attract Dutch players.

The KSA chairman believes this perception needs to be challenged, as the illegal market forms part of broader international structures operating across different jurisdictions and services.

🔣 Thesis 2: the Netherlands cannot act alone

Groothuizen argues that the Netherlands is too small to tackle the global infrastructure supporting illegal gambling on its own and that greater international and European cooperation is therefore necessary.

✂️(On September 3, Parliament held a debate on the implementation of the approved Online Gambling Act. The discussion unfolded roughly along these lines):

📌 Among the proposals and positions put forward during the debate:

🔸 MP Mirjam Bikker called for tighter advertising restrictions, faster blocking of illegal websites and questioned the delay in raising the minimum gambling age to 21.

🔸 Regarding website blocking, State Secretary for Justice Claudia van Bruggen said the Government is working to expand the powers available to take action against illegal operators.

🔸 MP Mohandis called for action against intermediaries and the financial infrastructure used by illegal operators. Van Bruggen agreed that payment systems are an important element and confirmed that work is underway to establish clearer criteria for determining when a company is facilitating illegal gambling activities.

🔸 MP Diederik van Dijk, of the SGP party, advocated much stricter measures, including a general ban on gambling advertising and the elimination of the national lottery.

🔸 The State Secretary rejected these proposals, arguing, among other things, that removing the legal offering would not eliminate demand but could instead push players toward unregulated websites.

🔸 Meanwhile, Joost Sneller, an MP from D66, warned of the so-called “waterbed effect”: excessively restrictive regulation could drive some players toward the illegal market.

🔣 The KSA's response

Groothuizen said he is pleased that the illegal market has received significant attention in the parliamentary debate, particularly regarding the possibility of introducing new tools to block illegal websites and combat unlicensed operators.

🔣 Positive aspect: the Netherlands is taking major technology companies to court for failing to pay sufficient attention to illegal gambling advertising.

🔣 Conclusion: it is naive to cling to the idea of a well-regulated national market. We are dealing with a global network of criminal organizations, while the response currently relies primarily on law enforcement. Greater cooperation between the competent authorities of different countries is therefore necessary.

🔣 Context: FATF broadly supports the idea of cross-border cooperation and has even published "risk indicators" to improve the information available to authorities responsible for combating these activities. We will continue to monitor developments.

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