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Compliance Updates

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

1Click Games receives the prestigious ISO 27001 Information Security Certificate

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The ISO 27001 certificate is a worldwide information security management standard that allows organizations in the online gambling industry and other sectors to manage asset security. It establishes, in particular, how information security risk management processes should be built and what controls should be used. ISO 27001 certification allows 1Click Games to offer additional guarantees to our customers regarding information security and data processing.

This year, the compliance of 1Click Games with ISO 27001 international standards was checked by one of the world’s leading independent auditors. The auditors assessed how our services comply with the requirements of the International Organization for Standardization, including management processes, the use of technologies and equipment. The analysis showed that the risk management system in the services is built and developed on the basis of the best world practices and fully provides the necessary information protection.

Maxim T., CEO at 1Click Games, says: “Data protection is one of the cornerstones of our business, and ISO 27001 certification demonstrates how seriously we take this responsibility and these strict standards. The certification process, took many hours of detailed checks. However, along with the satisfaction of the result, we recognize that this is only part of our ongoing responsibility to ensure the maximum possible safety of our customers. Besides, information security is never a static process, and in order to continue to set our services at the highest possible level, we requested one of the strictest certificates — ISO 27001 — and received it.”

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Lithuania Gambling Supervisory Authority Imposes €15,000 Fine on Top Sport

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Lithuania Gambling Supervisory Authority Imposes €15,000 Fine on Top Sport
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Lithuania’s Gambling Supervisory Authority has issued operator Top Sport UAB with a fine of €15,000 for failing to properly install a digital video recording system at two of its retail betting facilities.

An investigation by the regulator found that systems placed at the two locations in Klaipėda were not recording the premises properly.

The Authority said at one of the sites the video system set up to capture images of anyone who enters the shop was not recording accurately and the images were blurred, meaning it was not possible to identify those who had visited the premises.

The regulator’s investigation also found that the recording systems at both locations failed to capture images of financial transactions and also how much money was being paid in and out at each facility.

As such, the Authority said this breached article 15 part 3 of the Gambling Law of Lithuania, which states that video recordings must clearly show people entering the betting shop, as well as the actions of gamblers and bookmakers at the location.

The Authority noted that the decision is open to appeal by Top Sport.

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Compliance Updates

Danish Gambling Authority Blocks 82 Illegal Websites

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A Danish court has backed an order from the country’s gambling regulator resulting in a record 82 illegal websites being blocked.

It is the eighth time that the Danish Gambling Authority has gone to court to have illegal websites blocked that offer gambling activities such as betting and online casino to Danes without a licence.

On 22 September 2022, the court in Frederiksberg ruled in favour of the Danish Gambling Authority in all 82 cases that had been reported. It is the highest number of blockings at one time since 2012, when the Danish gambling market was partially liberalised, and the Danish Gambling Authority began blocking websites that illegally offer gambling to Danes. By comparison, the Danish Gambling Authority’s action against 55 websites in 2021 was upheld.

“The Danish Gambling Authority was established to ensure the framework for a fair gambling market. One of our most important tasks in that context is to protect players against illegal gambling and to ensure that they are not exposed to gambling providers that do not have a licence in Denmark. At the same time, it is very important that we ensure that the operators who are licensed to offer gambling in Denmark can run their business under orderly conditions and therefore our work to block illegal websites is very important,” Anders Dorph, Director of the Danish Gambling Authority, said.

Since the current Gambling Act came into force in 2012, the Danish Gambling Authority has had a total of 227 illegal websites blocked by the city court.

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