The Dutch gambling regulatory authority Kansspelautoriteit (KSA) assured operators at a closed meeting on October 1 that the license renewal in 2026 will not result in the direct expulsion of existing operators due to past violations, alleviating industry concerns that the renewal process might become a "reset rather than a renewal." KSA stated that it will adopt a more standardized renewal framework, allowing operators to simplify some module applications by submitting compliance declarations, but introducing new requirements such as exit plans and stricter due diligence obligations. Despite the easing of regulatory pressure, the industry still faces political uncertainty, with Christian and Socialist parties continuously pushing for stricter regulation, and the gambling tax has risen from 29% to 34.2%, expected to reach 37.8%. Operators worry that political pressure may lead to more restrictions, pushing players towards the illegal market.
Meeting Background and Operator Concerns
The Dutch gambling regulatory authority KSA held a closed meeting in The Hague on October 1, explaining the license renewal requirements for 2026. The Dutch remote gambling market was launched in 2021, and the first batch of 10 operator licenses will expire in October 2026 and need renewal.
Before the meeting, operators generally worried that KSA would tighten the rules, making the renewal process laborious and challenging, and possibly facing penalties or refusal due to past violations.
Regulatory Requirements and Renewal Framework
KSA clarified that the renewal framework is not a comprehensive crackdown, but a more standardized update system. Operators can simplify some module applications by submitting declarations to demonstrate compliance, reducing administrative burdens.
The new framework introduces exit plan requirements, where operators must detail how to orderly exit the market, ensuring player balance handling and data compliance. The violation prevention module is no longer limited to newcomers; existing license holders also need to submit detailed plans.
Specific Changes and Module Adjustments
Some modules, such as financial security, player funds, and internal supervision, can be approved by signing declarations, without needing to submit complete evidence applications. However, the central database module requirements are strengthened, requiring submission of control plans and compliance proofs.
The advertising and recruitment areas remain strictly regulated, with more comprehensive background checks, requiring disclosure of previously unreported personnel and relationships.
Civil Judgment Compliance Requirements
KSA emphasizes the importance of compliance with civil judgments, and operators failing to comply with enforceable rulings may have their licenses revoked. This includes rulings related to player profits, losses, or data subject access requests.
Strict enforcement of civil judgment compliance clauses is seen as a key measure to maintain market integrity and player protection.
Operator Reactions and Industry Views
Operators present at the meeting breathed a sigh of relief at KSA's clarification, considering the new framework more reasonable than expected. VNLOK trade organization chairman Bjorn Fuchs stated: "If you have a blank slate, then there will be some obstacles, but for various modules, you only need to send a declaration to demonstrate compliance."
Regulatory lawyer Justin Franssen believes that KSA has not set extreme obstacles for existing license holders, aiming to make the renewal process as smooth as possible.
Political Pressure and Regulatory Environment
The industry faces ongoing political pressure, with parties such as the Christian Union and the Socialist Party pushing for stricter regulation or even banning gambling. The gambling tax has climbed from 29% at market launch to 34.2%, expected to reach 37.8%.
The political environment makes the gambling industry "politically friendless," with tax increases and tightened regulation reflecting political caution rather than logical consideration.
Market Impact and Illegal Competition
Strict regulation may lead more players to the illegal market. National gambling addiction reporter Arnt Schellekens acknowledges that bans only push players towards unregulated markets.
Many in the industry are skeptical of KSA's early claims of channelization "80-20," believing that the illegal market size has always been large, and recent stricter regulations have driven more participants out of the regulated scope.
Future Outlook and Industry Expectations
Fuchs hopes that future fact-based regulation will replace the layering of new burdens. If the legal industry continues to be squeezed, people will turn to illegal services, which is not conducive to overall regulatory goals.
Despite facing challenges, operators hope that KSA can enhance legality and player trust through a clear, moderate, and consistent renewal process, gradually eliminating illegal operators.
Regulatory Balance and Market Reality
KSA needs to find a balance between regulatory strictness and market feasibility. Over-regulation may drive players towards illegal platforms, weakening consumer protection effects.
The regulatory authority acknowledges that a complete ban is unrealistic, and the focus should be on establishing a sustainable regulatory framework, balancing player protection and industry development.
International Comparison and Best Practices
The development of the Dutch regulatory framework is consistent with international trends, with many jurisdictions strengthening responsible gambling requirements and operator accountability.
KSA may refer to other markets' experiences and best practices to improve its regulatory system and enhance regulatory effectiveness.
Industry Adaptation and Strategic Adjustments
Operators need to adapt to new regulatory requirements, strengthening compliance systems and risk management capabilities. Smaller operators may face greater pressure, possibly exiting the market or being consolidated.
The industry needs to maintain constructive dialogue with regulatory authorities, jointly promoting fact-based regulatory policies, and fostering healthy market development.
