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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

LiveScore Group Announces Internal Restructuring as Part of Sustainable Growth Strategy

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LiveScore Group has announced an internal restructuring process, expected to impact more than 100 existing roles across multiple business locations, including London.

The changes are seen as a difficult yet important step for LiveScore Group, streamlining the business to create improved structures and a pathway to long-term sustainable growth. All impacted employees have been informed and are now subject to a confidential consultation process.

Sam Sadi, CEO of LiveScore Group, said: “On behalf of all Directors of LiveScore Group, and the relevant subsidiary companies, we are saddened by the difficult decision to commence an internal restructure of the business, a process which impacts a significant number of our people.

“Whilst we celebrate our recent period of significant and exciting growth, we must now future-proof the organisation and ensure our internal structures allow us to achieve long-term and sustainable success.

“This is a hard time for all our people, as we say goodbye to colleagues who have played an important role in our journey across recent years.”

The announcement follows on from the recent news that LiveScore Malta Limited (part of LiveScore Group) is to withdraw its LiveScore Bet brand from the Netherlands following recent government tax increases in the market. The announcement includes those impacted by this. There will be no other customer impact in respect of any of the remaining LiveScore, LiveScore Bet or Virgin Bet sites globally.

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Pronet Gaming Appoints Alex Karaoulis as its New Commercial & Product Strategy Lead

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Pronet Gaming, an award-winning platform provider of full turnkey solutions, announced the appointment of Alexandros Karaoulis as its new Commercial & Product Strategy Lead.

With over 14 years of experience in the iGaming industry, Karaoulis brings a wealth of knowledge and expertise that will be instrumental in driving the company’s strategic initiatives forward.

Throughout his iGaming career, Karaoulis has held various senior roles with B2B sportsbook and casino providers, as well as with B2C operators. His extensive background in marketing and sales within the iGaming sector positions him as a true industry expert, ensuring that Pronet Gaming remains at the forefront of innovation in a rapidly evolving market.

“I am thrilled to join Pronet Gaming and excited to fulfill my role in developing and executing sales strategies to drive the company’s revenue growth in key markets,” Karaoulis said.

With a track record in commercial strategies and driving product excellence, Karaoulis’ appointment is invaluable as Pronet Gaming now seeks to expand its footprint to Asia. His vision and deep understanding of the iGaming landscape equip him to navigate the unique challenges and opportunities that the dynamic region presents.

“I want Pronet Gaming to lead the iGaming revolution by providing innovative, culturally tailored solutions that cater to the diverse and rapidly growing demands of the region. Through strategic partnerships, cutting-edge technology, and a deep understanding of local markets, we aim to empower operators to offer world-class gaming experiences that engage players and drive sustainable growth,” he added.

According to Karaoulis, Pronet Gaming is poised to make a splash in Asia by leveraging its advanced technology, flexible platform solutions and deep market expertise while adapting to the unique characteristics of the region.

“The key differentiation point of Pronet Gaming is that we have B2C experience, which greatly aids in understanding the needs of operators and helping them to improve and execute their strategy according to the market. I have worked in B2C roles for more than seven years in my iGaming Career and managed campaigns across various channels, optimised conversion funnels, and learned to use data to improve player acquisition and retention,” said Karaoulis.

Karaoulis acknowledges that the marketing skills he has acquired from B2C experience are valuable in every B2B environment. As he dives into his new role at Pronet Gaming, Karaoulis aims to guide his operator clients on how to better market their own sites, including providing them with advice on effective acquisition strategies, content marketing and campaign structures that appeal to iGaming audiences.

“I also focus heavily on engagement strategies, loyalty programs, bonuses, and personalised offers to keep players active and returning. In my new B2B role, I will advise clients on best practices for player engagement, helping them adopt effective loyalty programs, personalised marketing, and retention tactics that drive player lifetime value to improve the end-player experience for our clients’ sites,” Karaoulis added.

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Industry News

Vbet Wins Best Online Casino Operator 2024 at SiGMA Europe 2024

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Vbet has been crowned the Best Online Casino Operator 2024 at the highly coveted SiGMA Europe event, cementing its position as a leader in the online gaming industry.

This achievement highlights Vbet’s commitment to providing an exceptional user experience by combining cutting-edge technology with a vast range of options and a secure process. The dedication to creating a responsible, enjoyable environment for players was recognised with this award, making this accolade even more significant. As Vbet continue to expand into new markets, the list of strategic partnerships grows alongside our constant drive to expand its offering. This award serves as a stepping stone on its path to reach more players and set new standards in the industry.

Arman Khachatryan, VBET’s Managing Director, said: “We are incredibly proud to receive the Best Online Casino Operator award at SiGMA Europe 2024. This recognition is a testament to the hard work, passion, and effort of our entire team. Our mission has always been to deliver the highest quality experience in the safest environment possible to our users. This award not only recognizes our dedication to this mission but also motivates us to continue expanding into new markets and territories.”

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