The Netherlands Gaming Authority (KSA) has published its 2023 annual report in which it provides a comprehensive overview of what it has done during the past year and what needs to be improved in the future.
Player protection was at the center of the activities, in line with the KSA's mission to "play safely". For example, through the publication of the investigation report on the duty of care and subsequent adjustments to the Rules of the Safe Gambling Policy. Vulnerable groups have also been better protected with the introduction of the new advertising rules on 1 July 2023. Important changes have been made to the Cruks exclusion register. A record amount of fines of €2023 million were issued in 36,7, including the first public fine under the WWFT. Other fines included offering unlicensed gambling and promoting illegal offers and advertising to the target group of young adults.
"Since October 2018, – writes René Jansen, KSA president, in the preface of the report – together with my board colleague Bernadette van Buchem, I was allowed to lead the then young gambling regulator into a challenging and dynamic phase. It seems like a short time ago: on February 19, 2019, the Senate approved the Remote Gambling Bill (Koa). Since then, a lot has happened at KSA and we have achieved a lot. Not only at the KSA, among other things, but certainly also at the Ministry of Justice and Security (JenV) and within the gaming sector itself. The entry into force of the new gambling law has had a particularly significant impact".
Since the opening of the online gambling market through the Remote Gambling Act (Koa) in October 2021, the KSA has seen two peaks with applications: when the Koa Act went into effect in April 2021 and shortly before the leniency scheme expires one year later on 1 April 2022. These applications have all been reviewed and completed. In 2023, the number of new applications dropped dramatically.
Koa permits
In 2023, the KSA received three license applications to organize remote gambling (KOA). With this license you are allowed to offer online gambling games, such as:
- Casino games where players play against the provider
- Casino games where players play against each other
- Betting on sports matches
- Horse betting
| organisers' activities | 2023 | 2022 | 2021 |
|---|---|---|---|
| Requests received | 3 | 27 | 42 |
| Questions withdrawn | 11* | 7 | 6 |
*Several applications received starting in 2022 were withdrawn in 2023.
Ten pending applications were withdrawn by the applicant. In one of these, the KSA expressed its intention to reject the application due to a negative integrity assessment. Ksa came to this conclusion due to illegal gambling in the past. The other nine applications were withdrawn after the applicant did not complete the CDB integration test within the stipulated deadline. In the integration test, the connection between the applicant's control database (CDB), the Ksa systems and the data processing is tested.
| organisers' activities | 2023 | 2022 | 2021 |
|---|---|---|---|
| Licenses granted | 4 | 13 | 11 |
| Waste Management | 4 | 3 | 6 |
In 2023, four licenses were granted for organizing online gambling. Furthermore, four applications were rejected. Two applications were rejected because several serious shortcomings were identified during the evaluation, in particular regarding the CDB. Two applications were rejected based on a negative integrity assessment, one of which was due to illegal gambling in the past.
Revocation upon user request
In 2023 KSA received a request from a supplier to revoke the license granted because it was not used. The request was granted and the permit was revoked.
Alterations
In 2023 KSA received three requests to modify the permit granted. All requests were aimed at expanding the range of games allowed. A change request has the same processing process as an application and also the same response times. At the end of 2023, the processing of the three requests had not yet been completed. In 2023, however, an amendment request was approved and submitted in 2022. The request was also to broaden the range of permitted games.
Notifications
Suppliers are required to report various changes. In 2023 Ksa received 314 reports. Most of these reports were minor in nature, such as a new contact person or changes in advertising or addiction prevention policies. Some acquisitions have also been reported, for example suppliers that were taken over by an investment company or large foreign suppliers without a KSA licence.
| 2023 | 2022 | |
|---|---|---|
| Notifications received | 314 | 328 |
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Ksa has seen an increase in the number of inquiries from suppliers about expanding the permitted range of games.
Integrity assessment
Ksa performs an integrity assessment on each change notification from a Koa vendor. In 2023, KSA completed 28 integrity investigations in response to such reports. No integrity risks emerged.
Slot Machine Operating Licenses and Integrity Investigations
In 2023 KSA received 55 applications for an operating license. These permissions are subject to strict integrity requirements. In this context, Ksa conducts thorough integrity investigations. Operators, managers and administrators must demonstrate impeccable conduct. Ksa also uses the Bibob (Promotion of Integrity Assessments by Public Administration) law to investigate whether there is a risk of improper or criminal use of permits. Every slot machine operator faces an integrity investigation. New permit applicants are always subject to extensive testing.
| 2023 | 2022 | 2021 | 2020 | |
|---|---|---|---|---|
| Slot machine investigation completed | 104 | 89 | 260 | 68 |
| Operating licenses issued | 43 | 45 | 226 | 43 |
| Applications rejected* | 4 | 7 | 11 | 9 |
| Changes approved | 10 | 7 | 4 | 5 |
| Provisional investigation without consequences | 23 | 26 | 15 | - |
| Licenses revoked | 22** | 4 | 4 | 10 |
| Additional requirements | 2 | - | - | 1 |
* Applications that have been rejected, ignored or withdrawn following an intent to reject.
** Revocation of operating license following a reliability test (7), revocation of operating license upon own request (10) and involuntarily (5).
In 2023 Ksa completed 104 integrity investigations of operating permits (required). This is an increase from 2022, but less than 2021. About 15% of studies in 2023 led to an intervention. Three licenses were refused and one application was not examined. Seven previously granted licenses have been revoked. Two permits are subject to the Bibob regulation in order to limit risks.
Model approvals
To bring a new type of gaming machine to the Dutch market, a model approval is required. To obtain it, the model must have been inspected by an accredited inspection body. Ksa checks, among other things, whether the machine meets legal requirements. If a slot machine is placed on the market, the holder of the design authorization must affix a 'marking' to the machine. This is a sticker protected against counterfeiting and detachment, which the manufacturer or importer (authorization holder) must purchase from Ksa. The color and number of the mark indicate which class a slot machine belongs to. In 2023 KSA issued 151 standard authorizations. In 2022 there were 86 market approvals. There is therefore a clear increase in the number of standard authorizations issued. Once placed on the market, a vending machine can only be installed in accordance with the issued authorization model (model conformity). In 2023, 1.349 model compliance cases were processed. In a single application, you can apply for multiple brands of a particular slot machine. In total 3.921 marks were issued.
| equipment | Number |
|---|---|
| TK: Casino gaming machine * | 123 |
| TS: Gaming machine for slot machine arcades | 8 |
| TB: Agility Dispenser | 15 |
| TH: Catering Game Machine (High Threshold) ** | 5 |
| Equipment modifications | Number |
|---|---|
| TK | 18 |
| TS | 7 |
| TB | - |
| TH | 3 |
* Gambling casinos under the law (those of Holland Casino), so no slot machine arcades.
** Can also be found in slot machine arcades.
Lottery Licenses
Ksa received 35 license applications to organize a one-off lottery. These are lotteries which are normally organized by local associations, for example by a football team that wants to build a new canteen*. Applications are assessed according to the conditions established by legislation and regulations. Among other things, there are requirements for remittance, number of withdrawals, payment of taxes and reporting of financial statements. The most important condition is that at least forty percent of the lottery proceeds be allocated to an action of Public interest (sport and well-being, culture, education and science, nature and environment, care, development cooperation, animal welfare)». This is regulated by Article 3 of the Gambling Act (WOK).
*More applications were processed in 2023 than 2022, and some 2023 applications will be processed in 2024.
Licenses granted
In 2023, the KSA granted 37 permits. This is a figure comparable to that of previous years. Only in 2022 did the KSA receive fewer applications and therefore far fewer permits were granted. The exact reason for this is unknown, but it could still be a result of Covid-19 restrictions.
| 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|---|
| Licenses granted | 37 | 24 | 45 | 33 | 37 | 47 |
Cancellation of the lottery
In 2023, three granted licenses were revoked at the request of three suppliers due to disappointing ticket sales. It is possible to cancel the raffle, but the proceeds from ticket sales must be refunded to buyers. Proof of reimbursement must be provided before collecting the license.
Integrity assessment
From 2021, Ksa is also able to carry out integrity assessments under the Bibob law for ancillary lotteries. One such evaluation was carried out in 2023. This initially resulted in the application being discontinued. Permission was granted during the opposition phase, after the integrity investigation had been completed and no risks had emerged. In 2023, the number of ancillary lottery licenses increased further, where the organization of gambling and the execution of gambling (or part of it) are outsourced to third parties. These lottery licenses involve far-reaching outsourcing to so-called “white label platforms”. At the request of the Ministry of Justice and Security, the WODC launched an investigation into these “white label platforms”. This is to obtain information on the nature and size of the casual lottery market, the role that “white label platforms” play in this market and the advantages and disadvantages this entails. Furthermore, the research aims to gain insight into the possibilities for supervision of this sector and to what extent it is necessary to use these possibilities in the current market.
Non-occasional lotteries
In addition to the incidental lotteries mentioned above, KSA can also license non-incidental (multi-year) lotteries. The authorization is granted for a period exceeding six months and for a maximum of five years. The permit cannot be renewed. There is no restriction on the number of permits the KSA can grant. These lotteries are subject to an “open” system: everyone who meets the conditions receives a permit. Ksa has received two applications for a non-incidental lottery license. An application was submitted because the previous permit had expired. The requested authorization has been granted. The other application was submitted by a party to whom the KSA has not previously granted a non-incidental lottery license. At the end of 2023, application processing had not yet been completed. Multi-year lottery providers are required to report when new directors and/or shareholders take office. The KSA then investigates these (and other) new officials. In 2023, no studies have been conducted on such changes.
Monopoly licenses
Under the Gambling Act (Wok), only one license can be granted for some gambling games. This applies to the provision of the game lotto, instant lottery, sports betting, totalizator, state lottery and casino games. These are called monopoly licenses. These are all land-based gambling games, also known as land-based gambling games. The license to offer state lottery and casino games has been granted for an indefinite period of time. Other monopoly licenses are valid for five years. As of 2023, Ksa has not received an application for a monopoly license. No monopoly licenses have expired in 2023 either.
