Will the Dutch Gambling Ad Ban Jeopardize Online Casinos?

Starting from the first of July 2023, there’s a country-wide ban on non-targeted advertisements for online gambling and betting. The catch lies in the term ‘non-targeted’. The new advertisement ban applies to all public advertisements: newspapers, magazines, billboards, mailings, television ads, etc. In a nutshell, the advertisement ban applies to any online gambling and betting ads that don’t have a specific target and try to reach the public domain.

Online gambling in itself is legalized in the Netherlands with over 20 companies having an official gambling license, including Kansino.nl among others. Despite official approval, even license holders can’t escape the new ad ban. According to the new ruling, license holders must also ensure that their advertisements aren’t directed to online games of chance. 

Targeted advertisements also need to follow rather strict rules which will inevitably limit the extent of advertisements run by Dutch online casinos. While the new gambling ad ban still allows online promotions (or even social media advertisements), the rules are far more strict. 

The main caveat lies in targeting: online gambling operators now need to ensure their advertisements don’t reach people who are younger than 24 or who may have applied gambling exclusions on themselves to stop potentially problematic gambling actions. In other words, gambling operators need to be extremely cautious, ensuring their ads would never reach vulnerable people. Beyond that, Dutch gambling license holders need to prove that at least 95% of their ads would reach people who aren’t younger than 24. 

End of sponsorships

One of the points in the new regulation that has ruffled the most feathers concerns sponsor agreements which may hit some sports teams and clubs quite heavily. Starting from the first of July, licensed Dutch gambling operators are prohibited from making sponsorship agreements. There’s a small transitional period, allowing shirt sponsorships until 2025 and TV sponsorships until 2024. 

After this transition period, however, Dutch gambling operators can’t have any new sponsor agreements. Sponsorships, in their essence, would entail nontargeted advertisement, and thus, the new ban outlaws any such collaborations. This means that Dutch gambling operators can’t even showcase their logos on sports team jerseys or sponsor any cultural events, as they may have done until now. Football sponsorships are slowly removed as well, though the timeline extends to 2028. 

If Dutch gambling operators should fail to follow these new ad bans, there’s a good chance they may lose their licenses. Currently, the legislation is unsure of when and how the penalty will exactly be applied, but there are talks of a two-strike rule. As an alternative, companies may receive hefty fines.

Are online casinos being phased out?

The underlying goal of the new advertisement ban is a noble one: to protect youngsters who may otherwise fall into gambling addiction or make regrettable financial decisions. 

However, new advertisement rules may also jeopardize legitimate Dutch online casinos that’ve already gone far and beyond to ensure a safe gambling environment, including following KYC rules and ensuring no underage people could participate in gambling. As advertisement channels become scarce, licensed operators may also find it hard to reach their target audience or grow sustainably. 

At the end of the day, licensed Dutch casinos employ hundreds of people, not to even mention their passive financial influence throughout tens of industries, such as sponsorship deals that finance many sports teams. The new advertisement ban, however, directly takes away from these industries and target groups who now lose out on financial gains.

There’s no secret that gambling may be addictive and should be practiced with caution and moderation but at the same time, Dutch online casinos may suffer due to their restricted promotional avenues. How exactly the new ban will work out and be enforced, remains to be seen, but in the meantime, licensed gambling operators need to become creative and cautious in their marketing efforts.