KSA warns over untargeted TV advertising

The Dutch Gaming Regulator (KSA) has issued a new warning reminding about advertising obligations by companies when promoting gambling products on television. The regulator stated that although TV spots featuring gambling products are still allowed until legislation takes effect on July 1, 2024, there are certain conditions to be observed. Meanwhile, sports partnerships and sponsorships are allowed on TV until July 1, 2025, and will enjoy a little more leeway than the iGaming and casino sectors.

Any time a gambling brand appears on TV, it must have its name stated plainly, and "neutrally," as per existing licensure agreements, and the Remote Gambling Act. One TV program, however, used the name of a legal provider who sponsored it and showed the brand in combination with a fruit machine game element, which the KSA insisted was not a neutral expression of advertisement.

The ad was considered to be "untargeted" which means that it could be seen by audiences who are not necessarily interested in gambling. This breaches a previous KSA ruling that introduced a ban on untargeted advertising in the country and has been in effect since July 1, 2023.

The KSA specifies that an advertisement moving forward and after the specified periods must only be reachable by an audience of 95% of individuals who are 24 years of age or older. Although the gambling industry in the Netherlands has been showing signs of maturity already, the regulator has been actively involved in tweaking every small change on the way.

The regulator has recently released a new overview of the state of the industry and how a better balance may be struck between business sustainability and consumer protection measures. Meanwhile, René Jansen, who is the outgoing Chair of the KSA, has stated that the industry was showing signs of maturity indeed, and the next years would be more about seeing consolidation of the existing market rather than welcoming new operators in.

The restrictions with regards to advertisement are also another important aspect of regulation, as the Netherlands wants to introduce a safer gambling industry but has acknowledged the need to allow local operators to build up their footprint first and pry away market share from the unregulated market, which has been happening at a satisfying clip.

Other jurisdictions have been less kind, and have offered no grace period, leading to a slump in channelization into the regulated market.

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