Dutch lawmakers want fines on gambling operators of up to 100% of annual turnover

• A pair of Dutch MPs is pushing for much tougher financial penalties against offending operators in the Netherlands
• If their proposal is approved, operators may face fines of up to 100% of their annual turnover
• However, rogue and offshore operators remain beyond reach, with calls to ban "all illegal platforms" still facing practical hindrances

The Netherlands has set a fresh record, issuing a €24.8m penalty to Novatec, a gambling operator that had been running business in the country without the appropriate license and purportedly deriving the bulk of its revenue from Dutch customers.

Bigger fines needed, say Dutch lawmakers

Now, a pair of Dutch lawmakers want to tighten things up further, with MPs Mirjam Bikker and Sarah Dobbe suggesting in a new draft law that operators ought to face penalties of up to 100% of their turnover, significantly rising the stakes for any company that does not meet the country’s stringent regulatory framework.

There is only one snag. Such penalties may be applied against companies that operate locally, are licensed, and willing to cooperate, or failing that, have assets to be seized locally.

Any rogue operator that is based offshore means the KSA, which regulates the gambling industry, would have to waddle in murky regulatory waters with little recourse to actually deliver on any enforcement action or threats.

MPs Bikker and Dobbe envision other keychanges to the current regulatory framework as well, with the lawmakers looking for the shutdown of all illegal gambling platforms as well as further slashing of the number of gambling ads.

Another point that the MPs have raised is the effectiveness of Cruks, the country’s self-exclusion register, which they do not see as nearly effective enough. The idea is to ensure that vulnerable consumers are restricted sooner.

Going after offshore companies is not really feasible right now

The KSA has been happy to impose stricter measures across key aspects of the gambling experience, but the regulator has admitted that it has been wrong on at least one occasion.

Trade bodies such as VNLOK have urged caution and have generally been against overly zealous regulatory measures, arguing that restricting ads will only lead to the legal market becoming weaker without any tangible gains on player safety, as offshore operators continue to target vulnerable players.

Most recently, in September, the regulator said that its risk mandates were flawed and needed reworking. MPs Bikker and Dobbe’s proposal, as well-intended as it may be, still clashes with the reality that the Netherlands has little means to pursue offenders beyond its borders, and that - every move designed to over-regulate the industry locally - empowers the black market abroad.

Image credit: Unspalsh.com