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Impact of the Coronavirus outbreak on the Dutch gambling sector

Posted on 14 April 2020 by Gaming & gambling

Just like almost every part of the Dutch economy, the gaming & gambling sector has been hit by the measures implemented by the government to combat the Coronavirus pandemic. On 14 April 2020, it was reported that, due to the forced closure of its fourteen venues, Holland Casino decided not to distribute profits to the Dutch state (the Ministry of Finance is the 100% shareholder). All slot machine halls have also been forced to close their doors for the time being and TOTO (the current monopolist on sports betting) has indicated that it is experiencing declining revenues due to the cancellation of most sports matches.

The Coronavirus pandemic also has its repercussions on politics. The House of Representatives, for example, carries out its activities in a limited capacity and civil servants of the various Ministries mostly work from home. It is unclear at this stage what the exact effects will be in relation to the parliamentary process surrounding the secondary legislation to the Remote Gambling Act. In any case, the Ministry of Justice and Security will have to answer the questions of the House of Representatives’ standing committee for Justice and Security, which were submitted on 27 March 2020. Amongst other things, questions were asked about whether the Coronavirus pandemic will result in delay of the Remote Gambling Act’s entry into force (which under the current official planning is still scheduled for 1 January 2021). In addition, questions were posed concerning the impact of the Coronavirus on the land-based gambling operators (slot machine halls and Holland Casino), given the forced (temporary) closure of their venues. In this context, questions were asked about the feasibility and desirability (in view of a possible weakening of the position of land-based operators compared to their remote counterparts) of the Remote Gambling Act entering into force on 1 January 2021. After the Ministry has provided its answers, a procedural meeting should determine what the further parliamentary process will look like. It could very well be that a short plenary debate will be scheduled. As such, it appears that the planned date for the Remote Gambling Act’s entry into force, set for 1 January 2021, has come under further pressure.

Finally, the Netherlands Gambling Authority, the administrative body charged with the supervision of the Betting and Gaming Act, also has to deal with the effects of the Coronavirus pandemic. In March 2020, the Netherlands Gambling Authority warned that it closely monitors the market for operators and advertisers trying to take advantage of the current situation. According to the Authority, it will take enforcement action against such parties (the European Betting & Gaming Association urged, in a public statement, which the Dutch trade association Stichting Speel Verantwoord has joined, remote gambling operators to refrain from any form of advertising referring to the Coronavirus). Furthermore, the scheduled meetings for the land-based sector on the Central Exclusion Register (CRUKS) were cancelled. The Netherlands Gambling Authority now decided to place the relevant information about CRUKS on its website (please find more information here). Furthermore, it has indicated that delays could arise in all its activities.

We can place this comment into its broader context. It is almost certain that there will be further delays in all aspects of the modernization of the Betting and Gaming Act and the Dutch gambling policy, starting with Remote Gambling Act dossier.

Interested in the licensing process for remote games of chance? More information can be found on our page Dutch licence for online gambling.

Kalff Katz & Franssen attorneys-at-law is the law firm in the Netherlands focussed on the gaming and gambling sector.

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