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Endorhina’s Head of Legal reports on the Netherlands’ new gambling law

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Endorhina's Head of Legal reports on the Netherlands' new gambling law
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Jakub, Endorphina’s Head of Legal, shares his thoughts in a detailed report on the Netherlands’ new gaming application process. We learned that starting October 1st, 2021, the Netherlands will finally release their new law regulation for online gambling!

Jakub explains that the market now becomes open for all types of licenses, like bets on events during a sports match, bets on horse races, and much more. We also hear that there are no limits to the number of accepted licenses, as long as you meet all the requirements.

Dive into Jakub’s full report below:

As of October 1st, 2021, the online gambling market in the Netherlands will finally open. The Dutch Senate approved of the Remote Gambling Act in February of 2019 after years of delays. Before this, the Netherlands tried to fight only the worst offenders in illegal gaming. Nearly two years later, the law is finally scheduled to enter in full force. The online gambling licensing application process began on April 1st, 2021, and now we can finally look forward to its official beginning on October 1st.

The market only opens for the following types of licenses:

  • Casino games in which the players play against the operator;
  • Casino games in which the players play against each other;
  • Bets on events during a sports match or on the outcome of sports matches; and
  • Bets on the results of horse races and harness racing organized by or under auspices of the Dutch Draf

Market surveillance is done by a regulator – the Netherlands Gambling Authority is responsible also for the licensing process. As mentioned above, the licensing process opened on April 1st 2021, therefore from the date of drafting this article, the applications are just being accepted.

There is no limitation on the number of accepted licenses, therefore anyone who fulfills all requirements of the regulator is entitled to receive a license. The duration of the license is 5 (five) years, and the licensing fee is set at EUR 48,000.

Applicants should have their registered office in the EU or the European Economic Area, some exceptions are, however, admissible. Regarding server location requirements, the Control Database Specification document specifies that: “The legislation requires that the CDB final data repository must be located in the Netherlands physically separated from the operators gambling system. Both may be located in the same data centre if an operator chooses to do so, however, data stored in this main the CDB final data repository must be logistically and safely separated from any other data.”

In order to be entitled to receive the license, the decree states that the continuity of a license must be reasonably guaranteed. Therefore, the applicant for the license shall in any case provide among other assurance report confirming that the applicant is not in bankruptcy, under a moratorium of payments or where the applicant’s assets are not subject to an enforceable attachment.

All online gambling applications shall also be assessed against the criteria as per the policy rules which include operating without a permit. No applicants shall operate on the Dutch market in two years and nine months preceding the date on which the application was submitted and during the processing of the application.

Unauthorized operations are deemed when the following criteria are met:

  • The game offer took place on a website whose extension ended in .nl;
  • The game offer was wholly or partly in the Dutch language;
  • The relevant offer or its provider advertised on TV, radio or printed media aimed at the Dutch market;
  • For the games on offer, there was a use of domain name containing terms typical of the Netherlands in combination with the designation of games of chance;
  • The website(s) on which the games of chance were offered contained any features from which a focus on the Netherlands can be deduced; and
  • For the games of chance offered, it was possible to use means of payment that are exclusively or largely used by Dutch people;

 

Taxes are calculated from the gross gaming revenue of the operators currently the taxation is 30.1%. The taxation rate was increased from 29% to 30.1% from January 1, 2018, due to loss of income for the state caused by delays in the adoption of the Online Gambling Act. According to press release from the regulator, the gambling tax will be released back to 29% six months after the entry into force of the Online Gambling Act.

Expectations from this market are rather high. The Netherlands took its time – and at a cost of multiple delays, hopefully, they’ve prepared their regulation for the high demands of the gambling industry.

And that’s a wrap!

We hope you enjoyed reading Jakub’s official report on the Netherlands’ new gambling law. If you have any questions, feel free to reach out to us anytime. For now, stay tuned to more insights and new releases coming soon!

Compliance Updates

Aviatrix flying in Italy following certificate approval

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Aviatrix flying in Italy following certificate approval
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Aviatrix, the groundbreaking crash game renowned for its unique engagement mechanics, is building new partnerships in Italy following the granting of a certificate in the country.

The Italian certificate enables Aviatrix to collaborate with operators regulated by the Agenzia delle Dogane e dei Monopoli, introducing casinos fans in Italy to the award-winning game for the first time.

Players at many of the biggest brands in Italy will soon be enjoying Aviatrix.

Anastasia Rimskaya, Chief Account Officer at Aviatrix, said: “We are excited to be bringing Aviatrix to players in Italy for the first time. This is a market where innovation and player engagement are highly valued, so we’re certain our product will be a great fit. And more than that, we have an opportunity to play a central role in one of Europe’s most vibrant online gaming cultures. We can’t wait to get started with operators in the country.”

Aviatrix is fast establishing itself as an important game in regulated jurisdictions, as it already is in emerging ones.

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Australia

NSW Govt Appoints New Board Members to ILGA

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The NSW Government has made appointments to the board of the Independent Liquor and Gaming Authority (ILGA), including a deputy chairperson and two new members.

Associate Professor Amelia Thorpe and Nicholas Nichles have been appointed following a rigorous public expression of interest selection process. Additionally, existing member Chris Honey has been appointed deputy chairperson.

ILGA is a statutory decision-maker responsible for a range of liquor, registered club and gaming machine regulatory functions including determining licensing and disciplinary matters.

The appointments follow the end of the term of appointment for outgoing deputy chairperson Sarah Dinning, and also fill vacancies that existed on the board.

Mr Honey, who was appointed a member of ILGA earlier in 2024, has been named deputy chairperson until the end of his current appointment term (11 February 2027).

Mr Honey has extensive experience in the advisory and restructuring field, including working extensively in highly regulated sectors.

Associate Professor Thorpe and Mr Nichles have both been appointed for four years commencing 6 November 2024.

Associate Prof Thorpe is with the Faculty of Law & Justice at the University of New South Wales and an Acting Commissioner of the NSW Land and Environment Court.

Mr Nichles was previously a Consul General and Senior Trade and Investment Commissioner for Australian Government agency Austrade, based in the US.

The new appointments bring the ILGA board membership to seven. The new appointments will join chairperson Caroline Lamb, new deputy chairperson Mr Honey and current members Cathie Armour, Jeffrey Loy APM and Dr Suzanne Craig.

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Compliance Updates

Ireland’s New Gambling Regulator to Begin Work on Phased Basis Next Year

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Ireland’s new gambling regulator is likely to begin overseeing betting businesses in the Republic midway through next year, industry figures predict.

President Micheal D Higgins recently signed the new Gambling Regulation Act, which overhauls licensing and creates a new authority to govern betting firms, into law. Industry figures forecast that the new regime should begin operating midway through next year, a key point for many businesses as they will have to renew online betting licences by that time.

Government also has to pass several milestones before the new Gambling Regulatory Authority of Ireland can start functioning, including appointing the seven people the body requires.

Minister for Justice Helen McEntee appointed senior civil servant Anne Marie Caulfield as chief executive designate of the authority in summer 2022. Her office has 11 staff. According to the Department of Justice, the State’s Public Appointments Service will shortly begin recruiting the authority’s seven members.

The Minister will appoint the candidates the service recommends.

The department could not say when the authority would start regulating but noted this would happen in a phased “timely manner” after its establishment.

Jack Chambers, Minister for Finance, earmarked €9.1 million for the authority next year in this month’s budget. That includes €4 million for technology.

Ms Caulfield wrote to industry organisations last week confirming that her organisation would begin its work on a “phased basis” but pointing out that it has already completed many preparations. In a statement she said that the authority was committed to keeping the industry fully informed so businesses can “plan for the new regulatory regime”.

Meanwhile, the Public Service Appointments Service last week advertised for someone to head the authority’s social fund. Under the new law’s provisions, betting businesses will contribute to this fund which the authority will use to tackle problem gambling.

Betting businesses regard the fund’s establishment as one of the key steps towards establishing the new regime.

Alongside that, they say that the authority will also have to set up its new licensing system. The law demands that all gambling businesses operating in the Republic be licensed and makes it a criminal offence to operate without a proper permit.

Lawyers at Arthur Cox recently noted that current permits are preserved until licensing sections of the act come into force. Existing high street and online bookies’ licences will have a run-off period, but lawyers said that how this would work in practice depended on how the regulator developed the new system.

Betting businesses are keen that the authority works on a national self-exclusion register for customers who voluntarily ask bookmakers not to take their bets. Currently, most individual bookies have systems where customers who fear they have a problem, or are at risk, can exclude themselves in this way.

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