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Julian Harris, Partner, Harris Hagan harris@harrishagan. com
The previous Government had brought in stricter measures to enforce current monopoly system for online gambling, but the new right wing coalition Government has announced proposals to replace this system with a regulatory regime. Details of the new system have yet to be released but a system of local licensing for operators wishing to target the market, similar to those in Italy and France, is likely. Many operators are currently targeting the Dutch market despite the ban on online gambling as the law is not being actively enforced. We anticipate that operators currently in the market would obtain a licence and continue to operate, provided the licence fees and tax rates are not prohibitive.
Dutch were ‘poised to introduce sweeping online gambling changes’ were a little optimistic. The new coalition government were indeed expected to move quickly towards introducing a regulatory and licensing regime. However, the process has stalled due to political infighting within the fragile coalition.
In June 2011, the Dutch newspapers, de Volkskrant and de Telegraaf, reported that Fred Teeven, the Deputy Justice Minister had plans to modernise the Dutch betting industry. Formerly a declared opponent of Internet gambling, Teeven has come to realise that it is an unstoppable force. With so many Dutch citizens already online and gambling, the stark choice is to either criminalise a large section of the population or to introduce regulation and tax it properly. However, his plans to legalise what are referred to as the ‘illegal’ online gaming sites are currently opposed by the Christian Democrat party. A junior member of the coalition, the party fear that widespread liberalisation may lead to an epidemic of gambling addiction. Further political infighting against the controversial ‘Freedom Party, could also sidetrack these moves. Teeven, for his part, argues that Dutch citizens are open to abuse online unless they are protected by a legislative regime that weeds out the fraudulent operators.
Despite these delays, there are positive signs that change is inevitable, particularly as all of
pokeR is the most populaR online
Game with 66 peR cent of playeRs makinG it theiR Game of choice.
Holland’s neighbours within a 500km radius of Amsterdam (except for Norway) already have or are proposing to regulate this market and issue licences for private operators. The European Commission (EC) has commissioned a Green Paper to investigate the issues surrounding the legalisation of online gambling in Europe and expects to publish the findings of the consultation shortly. These may shed some further light on the legality, or lack thereof, in regards to the Dutch monopoly system. Waiting too long brings the risk that they may face a Directive from the EC which would force them to change, and their current attitude suggests they would rather do it themselves.
Additional pressure for change can be found in the result of the 2008 Betfair case, referred to earlier, taken against a government monopoly in sports betting, and which finally received a verdict in March this year. The ruling against the Dutch government and not subject to
appeal, has meant that the Dutch Justice Secretary, Fred Teeven, has written to the parliament in Den Haag, stating that in future (most likely in 2013) there will be a transparent and non-discriminatory tendering process for gambling licences. Operators would be happy to hear that there were no plans to follow the Belgian model that requires a land- based presence to apply for an online licence. He also committed to exploring possibilities to introduce competition into other gaming formats, while emphasising the importance of maintaining safeguards against gambling addiction and fraud
It now only appears to be a matter of time before the government announces how the new online gaming regime will operate in Holland. The political infighting in the governing coalition will no doubt continue, but this will be limited to achieving minor changes within the proposed legislation. If the writing is on the wall, the Dutch graffiti artists are now all saying the same thing - legislation is coming.
the maRket sectoRs It has been estimated that over a million or seven per cent of the population participate in illegal gambling. Poker is the most popular past-time, with 66 per cent making it their game of choice. Concrete online gambling data figures are difficult to come by due to the current lack of official oversight within the
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