Online gambling operators in the Netherlands receive initial licenses for internet-based casinos
In a significant move for the Dutch gambling industry, the legalization of online gambling has been hailed as a success, despite some of the market leaders being considered the biggest losers. Entain and PokerStars, two major players in the gambling industry, have not received a license to operate in the Netherlands, primarily due to regulatory and compliance issues.
The Dutch government has implemented stringent regulations on online gambling, prioritizing consumer protection, responsible gambling, and strict licensing requirements. This regulatory environment has led to the denial or suspension of licenses for operators that fail to fully meet these standards.
Entain, a company generating a monthly turnover of 6 million euros in the Netherlands, and PokerStars, a popular name in the gambling world, must now suspend their operations in the Netherlands for the next six months. The Dutch authorities' rigorous scrutiny and enforcement of compliance within the regulated market are evident, as illustrated by PokerStars' temporary license suspension in 2023.
The Dutch gambling market enforces tough rules to ensure player safety and market integrity. High taxation and fee structures, strict responsible gambling and consumer protection measures, and regulatory scrutiny to maintain market integrity are some factors that likely influenced the license denials.
Despite the challenges faced by Entain and PokerStars, the Dutch market for online gambling continues to grow. In 2019, online casinos in the Netherlands generated over 400 million euros in revenue, a testament to their popularity and growth. The COVID-19 pandemic could lead to an increase in revenues for online casinos during the cold winter months, as people may be required to stay at home.
The Netherlands has issued 10 licenses to online casinos for legal internet gambling. Bet365 and Holland Casino, a state-owned gambling provider, are among the licensed online casinos. However, the recipients of 8 out of the 10 licenses are not yet publicly known.
The reason for some companies not receiving a license is not publicly disclosed, but it is clear that the Dutch authorities are taking a cautious approach toward licensing even for major players. Online gambling is widely accepted in Dutch society and has continued to grow, even when it was illegal.
For Entain and PokerStars, this 6-month break will result in millions of euros being lost. However, they will have the opportunity to reapply for a license once they have addressed the regulatory and compliance issues that led to their initial denial. The future of online gambling in the Netherlands remains promising, with revenues expected to continue growing, provided operators can meet the strict regulatory requirements set forth by the Dutch government.
What about sports betting, will it be affected too by the Dutch government's strict regulations on online gambling?Despite being major players in the gambling industry, Entain and PokerStars face suspension of their sports betting operations in the Netherlands, along with their casinos.
