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Netherlands Moves to Ban Untargeted Gambling Advertising

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In an effort to allegedly curb gambling addiction, the Netherlands has laid the groundwork for a comprehensive ban on untargeted gambling advertising.

Gambling advertising is set to take a significant hit in the Netherlands. The local government plans on setting a comprehensive ban on untargeted ads, in an attempt to reduce gambling addiction.

Online gambling became legal in the Netherlands in October 2021. Since then, the local gaming authority, Kansspelautoriteit, has issued licenses to more than 20 companies. This has naturally led to an increase in gambling advertising as well, with operators looking to increase their player count.

Authorities took notice and quickly began to phase out gambling advertising. One of the first moves lawmakers made to control gambling advertising was to stop celebrities from appearing in the ads. While celebrities, and retired football players in particular, were a common sight in gambling ads, this was soon brought to a stop.

Understanding the Ban on Untargeted Advertising

An argument at the centre of this discussion is the protection of vulnerable groups. In the case of online gambling, Dutch authorities determined that young adults, ages between 18 and 24, should be considered a vulnerable group.

Minister for legal protection Franc Weerwind has been developing regulations to protect these vulnerable groups from untargeted advertising.

As the name itself suggests, untargeted advertising refers to any kind of ad that isn’t aimed at one specific group. Some examples would include ads on bus shelters, billboards, signposts. Unlike online targeted advertising, untargeted advertising is there for all to see.

“We are already seeing a shift in marketing budget spendings of our partners, from the regular media channels to the affiliate channel. We expect this to continue in the coming months. Especially after the new law comes into force in July, we will work even more intensively with most parties,” says Michael Fancher CCO of Onlinecasino.amsterdam.

Football in particular is set to take a big hit. You’ve probably noticed an increase in gambling advertising on uniforms and stadiums. Betting sites and online casinos have been investing a significant amount in advertising sporting events. That obviously makes a lot of sense, considering that sports fans are also likely going to be drawn to betting.

Advertising in sporting events, however, also falls under the untargeted advertising umbrella. This means that football teams and other organisations must find a suitable replacement. Because of the large sums of money involved, authorities are willing to hold the ban back for a few years.

While the first set of regulations on untargeted gambling advertising is set to roll out as early as July 2023, sports teams will have a “grace period” of sorts. A ban on event sponsorship is already scheduled for 2024. Teams, meanwhile, will have until 2025 before the ban also hits them. This two-year period is in place to give them enough time to find a suitable replacement.

Fines for companies not in accordance with the new regulations could be quite hefty, as there are some examples to go by. JOI Gaming and Toto Online were initially issued warnings, and later fined, for targeting ads at vulnerable groups. The fines were reportedly as high as €400,000.

Untargeted Advertising and Gambling Addiction

Is there really any relation between untargeted gambling advertising and growth in gambling addiction?

Recent research has shown the opposite. A recent report by the National Alcohol and Drug Information System shows that gambling addiction has gone down over the last two years.

At the same time, a recent survey by Nielsen shows that gambling advertisement spending has gone up by as much as €15 million. While companies have spent more on advertising, this number hasn’t necessarily translated into gambling addiction – quite the opposite.

These numbers, of course, also include untargeted ads. The World Cup was one of the driving forces behind this sudden jump in investment. And it is no secret that the World Cup is a big opportunity for untargeted advertising. Yet, gambling addiction continued to go down.

At the end of the day, most signs point out that gambling addiction and gambling advertisements aren’t necessarily related.

There is also legislation already in place to protect these vulnerable age groups. Gambling ads will usually air past 10:00 pm, for example.

What Now for Gambling Advertising in the Netherlands?

Setting aside the debate about untargeted advertising, one thing is certain: gambling companies in the Netherlands will take a significant hit once the new legislation rolls out. How can online casinos and other gambling operations make up for the ban?

One viable solution has always been there: online ads. Targeted advertising is still legal, and gambling companies can still use Google for advertising. Email ads are also an option, and still relevant to target specific groups of potential users.

Of course, the ban on untargeted advertising is currently restricted to the Netherlands. In other words, companies can still turn their attention to international events. It’s still perfectly legal to advertise in big international competitions, like the World Cup or the Champions League. Naturally, Dutch viewers, whether through streaming or conventional broadcasts, will get to see these ads.

While the ban on untargeted advertisements will inevitably have a negative effect, it’s not the end of the road for gambling advertisements in the Netherlands. There are still plenty of ways to get the message across, but it will require a bit of a rethink on how to do it in the most effective way.

Industry News

MiFinity to Showcase Innovative iFrame at SiGMA 2024

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MiFinity, a leading global payment services provider, is excited to announce its participation at SiGMA 2024, held in Malta from 12 to 14 November. Visitors can find MiFinity at Stand 2012, where the team will be showcasing its award winning PayAnyBank service, and the latest version of the MiFinity iFrame and demonstrating how it helps iGaming operators acquire and retain players with a seamless, flexible payment experience.

Paul Kavanagh, CEO of MiFinity, commented: “SiGMA is a fantastic opportunity for us to showcase our latest developments and engage directly with the iGaming community. The MiFinity iFrame is a game-changer for operators looking to streamline their payment processes and enhance the player experience. We look forward to demonstrating its capabilities and connecting with both existing and prospective partners.”

MiFinity’s Business Development and Account Management teams will be on-site to discuss the new iFrame features in-depth and highlight how MiFinity can optimise payments for iGaming operators. They will also be showcasing MiFinity’s innovative suite of payment solutions developed specifically for the iGaming sector, including MiFinity PayAnyBank — a powerful tool that enables operators to send payouts directly to players’ bank accounts in multiple countries and currencies, enhancing the user experience with faster, more localised transactions and reduced FX fees.

The MiFinity Affiliates team will also be available to explain the benefits of MiFinity’s affiliate program, which offers some of the highest commissions in the industry and unique promotional opportunities via the MiFinity Bonus website.

Meet the MiFinity team at Stand 2012 at SiGMA 2024 to learn more about the company’s solutions and how they are transforming the iGaming payment landscape. Pre-book a meeting with the MiFinity team or drop by the stand during the event to explore how MiFinity can support your business.

Book a meeting here > outlook.office365.com/book/[email protected]/

 

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Industry News

Dutch Mental Health Care Calls for Total Ban on Online Gambling Advertising

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The Dutch mental health service is calling for a total ban on online gambling advertisements in the Netherlands.

Although a ban on untargeted gambling advertisements and a ban on the use of role models has been in effect since 2023, a recent research by KRO-NCRV’s Pointer shows that (illegal) gambling companies and sports tipster platforms are still enticing young people via social media such as TikTok and Snapchat.

By using influencers and terms like “free money”, they try to attract a young audience and thus lower the threshold to start gambling. This concerns both legal online casinos and online casinos that do not have a license in the Netherlands. The Gaming Authority has started an investigation based on Pointer’s findings.

Pointer’s research shows that part of the gambling industry deliberately targets young people who are often susceptible to promises such as “fast money” and the influence of role models. Ruth Peetoom, chair of the Dutch mental health service, compares this approach to that of the tobacco industry, where similar marketing strategies were used to get young people to smoke.

Despite the existing advertising ban, gambling companies continue to explore the boundaries of the law, according to Peetoom. The Dutch mental health and addiction care associations in the Netherlands therefore push for a total ban on online gambling advertising and stricter rules for the duty of care of gambling providers.

With the call for a total ban, the Dutch mental health care sector hopes to prevent further normalisation of gambling behaviour among young people and to protect them from the temptation and consequences of online gambling.

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Compliance Updates

UKGC: Market impact data on gambling behaviour – operator data to Oct 2024

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UKGC: Market impact data on gambling behaviour - operator data to Oct 2024
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The Gambling Commission has published further data on the gambling industry in Great Britain.

This data, sourced from operators, reflects the period between March 2020 and September 2024, inclusive, and covers online and in-person gambling covering Licensed Betting Operators (LBOs) found on Britain’s high streets.

Comparison should not be made with the industry statistics dataset, as this dataset may include free bets and bonuses and does not include data from all operators.

This release compares Quarter 2 (Q2) of financial year 2024 to 2025, with Q2 of 2023 to 2024, looking at how the market has changed in comparative periods over a year.

The latest operator data shows:

  • online total Gross Gambling Yield (GGY) in Q2 (July to September) was £1.32 billion, an increase of 11 percent from Q2 the previous year. The overall number of total bets and/or spins increased 12 percent Year-on-Year (YoY), reaching a new peak for the third consecutive quarter of 25.2 billion, whilst the average monthly active accounts2 in the quarter increased 8 percent
  • real event betting GGY increased by 6 percent YoY to £453 million. The number of bets decreased 10 percent, while the average monthly active accounts in Q2 increased 9 percent
  • slots GGY increased 16 percent to £680 million YoY. The number of spins increased 13 percent to 23.3 billion while the average monthly active accounts in Q2 increased 16 percent to 4.4 million per month. Although this is a new peak for GGY in this dataset for the slots vertical, it should be noted that one operator has re-classified some of its products into the slot vertical this quarter, which has had an impact on the vertical data
  • the number of online slots sessions lasting longer than an hour increased by 9 percent YoY to 10 million. The average session length remained at 17 minutes. Approximately 6.1 percent of all sessions lasted more than one hour compared to 6.6 percent in Q2 the previous year. The number of spins per session has fallen from 147 to 142 YOY, whilst the GGY per session has fallen from £4.20 to £4.13 in the equivalent timeframe
  • LBO GGY decreased by 1 percent to £533 million in Q2 2024 to 2025, compared to the same quarter last year, while the number of total bets and spins decreased by 0.1 percent to 3.1 billion.
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