Deposit Limits to Take Effect Under New Dutch Gambling Rules from October 1

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October 2nd, 2024
Back Deposit Limits to Take Effect Under New Dutch Gambling Rules from October 1

As of October 1, 2024, online gamblers in the Netherlands are subject to new protection measures aimed at promoting responsible gambling. These rules are part of the Responsible Gaming Policy Rule and the Gaming Limits and More Conscious Gaming Behaviour Regulation, introduced by the Dutch government to safeguard players from the risks associated with online gambling. All licensed operators must now comply with the new rules, which include strict deposit limits and enhanced player monitoring.

Deposit Limits Now Mandatory

A key aspect of the new regulations is the introduction of mandatory net deposit limits. Players who exceed a net deposit of €700 (or €300 for those aged 18-25) in a single calendar month will be temporarily restricted from making further deposits until the beginning of the next month. The aim is to prevent excessive spending, with the limits automatically resetting on the first day of each month.

These deposit thresholds apply to a player’s total deposits minus any withdrawals. For instance, if a player deposits €1,000 but withdraws €300, the net deposit stands at €700, reaching the maximum allowable limit. Once this threshold is hit, further deposits are blocked until the next calendar month.

For those wishing to exceed the limit, they must provide proof of income to the operator, who will assess the player’s financial capability. Typically, 30% of a player’s net income is used as a guideline to determine whether they can afford additional deposits. However, players are free to wait for the limit to reset instead of submitting their income details.

Alongside the mandatory net deposit limits, players must set personal deposit limits when they create an account with an online gambling operator. Operators are required to engage with players who set high deposit limits, specifically €350 per month (or €150 for young adults aged 18-25). The operator must contact these players, usually through a phone call or chat, to ensure they are aware of the risks of gambling and to discuss available support options, including self-exclusion via the national scheme Crucks.

For existing players with deposit limits above these thresholds, operators must display a pop-up message explaining the risks of high limits. This message must be visible for at least 30 seconds, after which players will have the opportunity to adjust their limits if desired. Importantly, this mandatory interaction only occurs when players increase their deposit limits above €350; lowering a limit does not require such contact.

Continuous Player Monitoring

To promote awareness during gaming sessions, operators must display responsible gambling messages regularly. Pop-up notifications will now appear every 30 minutes to inform players of the time spent gambling, with additional alerts when they have reached 50% and 100% of their set deposit or time limits. If a player hits their time limit, they will be automatically logged out.

These measures aim to encourage more conscious gambling behavior by ensuring players are constantly reminded of their activity levels and financial commitments while gambling.

The Dutch Online Gambling Providers Association (VNLOK) has voiced its support for the new measures, emphasizing their potential to improve player safety. According to VNLOK chair Helma Lodders, "VNLOK members have already taken extra-legal measures to provide additional protection for players... VNLOK is therefore in favor of proven effective measures that keep the Dutch online gambling market safe and responsible."

However, VNLOK also expressed concerns about the broader regulatory landscape. The Remote Gambling Act (Wet Koa) is currently under evaluation by the Dutch gaming regulator, Kansspelautoriteit (KSA), and the results of this review are expected by the end of October 2024. VNLOK has cautioned that further regulatory changes could undermine the cohesion of gambling legislation and drive players to the unregulated, illegal gambling market.

Lodders warns that "well-intentioned measures can have a counterproductive effect," urging policymakers to maintain a balance between regulation and market attractiveness. Over-regulation, she argues, could reduce the appeal of the legal market, inadvertently encouraging players to seek out riskier, illegal gambling options.

Future Challenges for Operators

The new regulations will undoubtedly increase operational challenges for licensed gambling operators in the Netherlands. In addition to deposit limits and mandatory player interactions, the government has approved a tax increase for the gambling sector, set to rise from 30.5% to 34.2% in January 2025, and further to 37.5% by January 2026. This, combined with the new rules, is likely to push up costs for operators.

Alan Littler, a gambling lawyer with Kalff Katz & Franssen, has highlighted the financial burden these changes will place on businesses. He notes that operators will face higher operational costs while managing reduced consumer spending due to the tighter deposit controls.

As the regulatory framework continues to evolve, the Dutch gambling market will need to strike a careful balance between protecting consumers and maintaining a viable legal market for operators.

Source:

''New measures for additional protection of online players as of October 1, 2024'', VNLOK, October 01, 2024.

“... from 1 October, players will receive a pop-up every thirty minutes that tells them how long they have been playing...”

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