The Chairman of Kansspelautoriteit (KSA), the Dutch Gambling Authority René Jansen, says the KOA online gambling market, which launched October 2021, has reached maturity, EGR Global reported December 12. Jansen will end his six-year term next July.
The chairman was commenting in his KSA blog post, where he wrote that “changes in permits” mirror the new marketplace. The lead-up to the launch saw the agency “inundated with applications” up until the end of the period of leniency that lasted 12 months—until October 2022.
During the launch, about a third of permit applications were approved. In 2023 the number of applicants dropped sharply, something the regulator expects will continue next year.
The KOA market continues to evolve, exemplified by requests from existing license holders to be allowed to expand their game offerings. In addition, the market is winnowing itself with mergers and acquisitions as smaller operators merge to be more competitive and larger operators absorb competitors to obtain more market share, which is a typical development in a new marketplace.
The chairman wrote: “In terms of takeovers, we see from questions that are asked that small licensees are joining forces and moving forward together to strengthen their position and that larger licensees are taking over smaller licensees to get ahead of the competition.”
Also, offshore operators who failed to be licensed seek to acquire smaller operators who did get licenses, particularly those who have experience in navigating the Dutch regulatory landscape.
All this signals the arrival at market maturity, said Jansen. “This development, from mainly requests to mainly changes, shows that the market is starting to reach a certain degree of maturity,” he wrote. “It is no longer so much about conquering a position but mainly about strengthening the competitive position and increasing market share.”
Jansen doesn’t want licensed applicants to get so tied up in competing and acquiring that they neglect protecting vulnerable consumers. Referring to the impending end of his term as chairman next July, he called on providers to “include in their good intentions for 2024 that, when they want to work on their growth, they do not lose sight of the commitment to safe playing.”
Meanwhile, KSA has introduced updates to the Money Laundering and Terrorism Financing (Prevention) Act, which is intended to focus an even more systemic regulatory microscope on the sources of gamblers’ funds. This is considered even more important in the online market.
The KSA has sought to consult with stakeholders and industry figures, plus the Netherlands Financial Intelligence Unit (FIU Netherlands.) As a result the guidelines have been refined and responsibilities clarified regarding how much research operators need to take to both fight gambling addiction and money laundering
The gambling regulatory landscape could further be changed since the government expects to have a new prime minister soon, with a coalition government likely to be headed by the Freedom Party, led by Geert Wilders.
