At the end of December 2011 the Dutch Senate approved the introduction of the new Games of Chance Authority (Kansspelautoriteit ("KSA")). The KSA will replace the Netherlands Gaming Control Board. As of 1 April 2012 the new authority, officiating at The Hague, will start its activities. An important task will be the issuing of new licenses for games of chance. State Secretary Teeven has recognized in the memorandum of reply (TK 2011-2012, 32 264, no. A) "that there are rulings demanding the introduction of a transparent procurement procedure."

Betfair

The State Secretary is presumably referring to the judgment of the Administrative Law Judicial Division of the Council of State of 23 March 2011 in an appeal brought by Betfair (JB 2011/131). In this judgment, the Division has cautioned the Minister of Justice because of the non-transparent manner in which the license was granted to, inter alia, De Lotto. We expect that with the introduction of the KSA the enforcement of the Betting and Gaming Act will obtain more attention. For instance, the KSA has the authority to impose administrative penalties for violations up to an amount of €780,000, or if this amount is higher, up to 10% of the turnover of the past financial year.

Small-Scale Poker Games and Online Games of Chance

In the memorandum of reply the State Secretary has announced that small-scale poker games on a local level shall be authorised. Also, licenses to offer games of chance on the Internet will be introduced. To this end, a bill will be submitted this year. Rules will be set for the registration and identification of players in order to prevent games of chance from being offered via the Internet to persons under the age of 18 or to persons with addiction problems. The providers must monitor and analyse the gaming behaviour and interfere in the event of risky gaming behaviour, says the State Secretary. In order for these rules to be elaborated, the bill must be awaited. Therefore, the market participants must have some patience before the substantiation will be available in the bill. Meanwhile, the providers of games of chance already will have to reckon with the new supervisory authority.

First published in the Kennedy Van der Laan newsletter - January 2012

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