Netherlands Breaks Into iGaming

The Netherlands has for years been an untapped market for online gaming. That changed April 1 when the Netherlands Gambling Authority began accepted license applications. The market is expected to launch October 1.

Netherlands Breaks Into iGaming

The Netherlands remains one of the few untouched online gaming markets in the European Union. Yet Dutch players gamble widely on off-shore sites that don’t pay taxes to the Hague. That’s about to change thanks to the passage of the Remote Gaming Act.

The licensing application process has finally launched, after enduring technical delays in the online portal that pushed it back from its planned debit on April 1 for about half a day. The legal market is expected to launch October 1.

After the launch, René Jansen, chairman of the Netherlands Gambling Authority said in a statement: “At times like this, in the midst of all the hustle and bustle, it is good to take a moment to reflect on what it was all about. In the legalization and regulation of online gaming, the essential policy goal is to ‘channel’ consumers from illegal to legal providers.”

Companies such as Holland Casino, TOTO and Fair Play Casino expect to do a brisk business and bring in an estimated €800 million ($716 million) in the first year. Dozens of operators, perhaps as many as 40, are expected to apply for licenses, with about 35 being granted.

Holland Casino is constructing a live studio in Scheveningen casino to enable online blackjack and roulette. The U.K.’s megaplayer Bet365 is expected to apply for a license and casinos in neighboring Belgium plan to apply.

Jensen added, “The legal online market will open on October 1 for companies that manage to obtain a license. But I can assure you: you don’t get one just like that.”

Some companies that have allowed Dutch players to gamble in contravention of Dutch law won’t be allowed to apply for licenses right away.

These developments come as a survey published right before the licensing process began showed that the public has little interest in online gaming.

The poll was conducted by Ipsos for the Netherlands Online Gaming Association (NOGA). It found that 49 percent of those survey had heard of online gaming or didn’t know much about it. Five percent had not heard of online gaming while 31 percent had heard of it but didn’t partake. Only 5 percent said they made bets online regularly; with 10 percent gambling online but not often.

Two-thirds of respondents did not know about the new legislation with 12 percent calling themselves, “well aware of it.” Among those who identified themselves as gamblers, 59 percent were aware of the changes to online gaming law.