The Dutch Senate voted in favour of the new online gaming law. The law entails a long-awaited re-regulation in the Netherlands. The new law is expected to enter into force at the earliest during the third quarter of 2020, at the same time as license applications can be submitted. Gambling tax will be applied at 29 percent of GGR. Betsson welcomes the new Dutch gaming law despite hesitation to the related proposal for a so-called “cooling-off period”.
The debate about the Dutch gaming market has been going on for a long time, and today the Dutch Senate finally voted through the gaming law, which makes it possible for foreign gaming companies to obtain a local license when the law enters into force.
The new law is accompanied by a proposal from the Dutch Minister Sander Dekker for a so-called “cooling off period” of two years for “illegal operators” *. How this proposal will be implemented in practice is still unclear. The Minister’s proposal does not differentiate between fined and non-fined operators, which means that Corona Ltd (a subsidiary of Betsson which was fined by the Dutch gaming authority but which appealed in 2018) is in the same position as other foreign gaming companies operating in the market in this respect.
Finally, there will be modern legislation in a large monopoly market in Europe. Betsson already has 12 local licenses in Europe and looks forward to the Netherlands joining several other European countries and opening up the market to competition. We welcome the proposal despite the fact that we are wondering about the so-called “cooling off” period because it risks damaging the channelling of customers and may be in violation of applicable EU law.
Pontus Lindwall, President and CEO of Betsson AB.
Our view is that all international operators currently in the Dutch market have the opportunity to apply for a license, but that the timing of licensing may be affected by the proposed ‘cooling-off’ period. We interpret this as meaning that this is not a strictly so-called “black-out period”. If a “cooling off” period is implemented in the Netherlands, Betsson’s operating subsidiaries will make certain adjustments in their offering to best manage the consequences of the “cooling off” period and put themselves in a good position for a licensing process”, Pontus Lindwall concludes.
* The term “illegal operators” is a reference to international gaming operators, in a proposal from Minister Dekker, who actively marketed himself towards the Dutch market through either local payment intermediaries such as, e.g. iDeal, operators who market themselves in the Netherlands or who have used a Dutch domain name. It is our opinion that a so-called “cooling off period” would start as soon as the new bill has been published.
