With the election edging closer in the Netherlands, political discourse around the country’s gambling framework has continued to intensify.
Centre-right party, the VVD, has laid out plans to expand the powers of Kansspelautoriteit (KSA) should it achieve success in the hotly anticipated Dutch election.
Central to these plans is the increasing enforcement action over the gambling sector and strengthening safeguards against illegal gambling.
The party detailed the importance of collaboration across Europe, as the continent embarks on the challenge of strangling black market engagement.
In its manifesto, it outlined that ‘a creative approach’ is needed in terms of tackling the black market, aligning with the approach to taking out criminal networks.
Legal Protections Secretary Teun Struycken are currently atop a list of Remote Gambling Act 2021 (KOA) reforms that already foresee the gambling regulator becoming equipped with more powers. VVD now promises to expedite this process.
The party’s focus on gambling is most likely driven by continuous warnings from the sector that the black market has now reached a concerning size, which threatens Dutch consumers.
At the most recent Gaming in Holland conference, Arjan Blok, CEO of the Dutch state lottery, stated that 25% of customers are engaging with unlicensed operators, leading to a loss of €1.3bn.
VVD has placed a strong focus on tackling these concerns. Its manifesto to tackle the black market carries proper weight due to the party’s size. It was one of the four-party coalition governments that fell apart earlier this year, which led to new elections being scheduled for 29 October.
It comes following warnings from the regulator that operators must do more to mitigate the threat of money laundering.
It confirmed that it has issued three unnamed operators with instructions related to the Money Laundering and Terrorism Financing (Prevention) Act (Wwft).
Following an investigation, the KSA found that the operators in question had not complied with the Wwft and its guidelines.
In particular, the regulator observed that providers do not always thoroughly investigate the source of players’ funds, and there were further shortcomings related to the risk classification of players.
“The KSA’s current instructions require providers to adhere to the Wwft guidelines and to end the violations. If a subsequent inspection reveals that this is not the case, a more severe sanction may be imposed, such as a penalty or fine,” the regulator warned.