The Netherlands – KSA publishes further conditions for online licenses

The Dutch Gambling Authority (“KSA“) has published new information on the conditions that need to be met in order to obtain a licence for online games of chance (available in Dutch here). We also note that the KSA has indicated that it will organize workshops for potential applicants for a remote gambling licence. In these workshops, further information and details about technical requirements will be provided. Dates of the workshops are to be announced at a later stage. For more information, we refer to the KSA’s update in English here.

Below, we give a high-level overview of the new information that the KSA provided.

General

  1. The language of an application is Dutch (very specific documents may be filed in English, accompanied by a translation).
  2. Application fee: EUR 45,000 (not refundable, even if application is unsuccessful)
  3. Applications are only taken into consideration when:
    • the applications are complete;
    • the applicants identity is clear; and
    • payment of the application fee has been made.
  4. Applications are to be accompanied by evidence (in some instances, such evidence is to be certified by an independent third party).

Categories of online games of chance

There will be four types of online games of chance for which a licence can be obtained:

  1. casino games in which players play against the licencee (operator);
  2. casino games in which players play against other players;
  3. betting on events in sports matches or the result of such matches;
  4. betting on horse-racing

Topics of interest

 The KSA also gives an overview of the topics that will need to be addressed in an application for an online game of chance. Documents (or other information) evidencing the following will need to be submitted:

  1. reliability of the operator (e.g. prior criminal, administrative or tax-sanctions of the operator or key related entities/persons). This includes inter alia providing certified structure charts. Also refer to our earlier report about reliability guidelines here;
  2. policies to ensure that all the operators’ employees have (or are taught) the required expertise;
  3. business continuity of the operator and separation of players’ cash accounts and provision of an emergency “exit-plan”;
  4. having an anti-addiction representative and an anti-addiction policy (including education of employees on the risks of addiction);
  5. compliance with the general and specific rules of advertising and marketing;
  6. compliance with consumer protection rules;
  7. ability to detect and report match fixing;
  8. compliance with AML and Sanctions Act (especially the specific wwft-Guidelines on which we reported in July here);
  9. compliance with all rules relating to outsourcing of activities, where such outsourcing is permitted;
  10. presence of an adequate integrity policy;
  11. describing the payment transactions-process;
  12. able to vet players through identification and verification;
  13. operator’s ability to participate in CRUKS (the central player exclusion register); and
  14. provision of information about operators games to CDB (obligation to supply information to the Control Database, which we reported on earlier).

The KSA stresses again that this information is subject to change, depending on the development of the subordinate legislation under the Remote Gambling Act. The Dutch Ministry of Justice is working on developing that. We will keep you updated of further developments.

Sharif Ibrahim and Richard van Schaik