The Chairman of the Dutch Gambling Authority (KSA), Michel Groothuizen, has taken aim at ‘Big Tech’ in his latest statement published through the KSA, as he discussed the matter of illegal gambling ads on online platforms.
KSA Chairman says illegal market has not dissipated after legal market launch
In his statement, Groothuizen noted that it was exactly five years ago that the gambling market was legalised in the Netherlands, and that the first licenses were approved and issued.
That said, he commented that the illegal market “has by no means disappeared” as a result of the regulated market launch, “even though study after study indicates that about 90 per cent of Dutch online gamblers practice their hobby exclusively with legal providers”.
Groothuizen remarked that for every euro gambled on the legal market, “one ends up in the illegal circuit”. Therefore, he said that law enforcement in this situation is a top priority for the KSA.
Continuing on that point, he said that the KSA has been firm in its efforts to fine illegal providers to send a clear signal about what is allowed and what is not, “but it has hardly any effect when it comes to collection,” he added.
He described the situation as “frustrating,” and continued that this is why the KSA has been taking somewhat of a different approach over the past year and a half, with the aim being to frustrate the illegal offer by ensuring that they are more difficult to find and that no more payments can be made to and by them. “We are not there yet,” he remarked, “but the direction is clear.”
‘Big Tech’ earns a lot of money from illegal gambling ads, says KSA Chairman
Groothuizen referred to a Commission debate which took place in September, where he said that arguments were made calling for the KSA to impose fines on big tech companies, or ‘very large online platforms (VLOPs)’, with the reasoning being that “they are largely responsible for the visibility of the illegal offer”.
Reflecting on this, the KSA Chief said that he would like to be a tough supervisor, but he is also wary of misfiring, as he described the issue as “a much longer-term matter”.
He said that ‘Big Tech’ earns a lot of money from illegal gambling providers running ads, not only in the Netherlands, but also across Europe overall, and even worldwide.
“This is a billion-dollar industry that contributes significantly to their profitability,” he commented. “Voluntarily relinquishing this or imposing substantial restrictions on oneself goes very much against the revenue model. Yet that is what we demand of them, preferably willingly, if necessary, unwillingly.”
Groothuizen said that the KSA tries to do business with VLOPs and tries to make agreements which get such platforms to “voluntarily behave better and take responsibility”. He said that some adjustments that are very important to the KSA sometimes end up being “a piece of cake” for such platforms.
Having said that, he commented that some “other measures demand a lot from them, technically or financially”.
European regulators working on a legal gambling providers whitelist with Google
He spoke of talks which have been held with Google and Meta and a number of European regulators, where he noted that both sides of the table understood that litigation was the alternative to cooperation. He continued that there is now a “joint-task force” that is drawing up a whitelist with Google of all legal providers in the EU.
“All other operators are then by definition in violation and can be banned by Google,” he stated. “Hopefully we will turn off a main tap with that, but there are probably more main taps.”
The KSA Chief noted that the regulator understands that the interests of big tech companies are “often at odds” with what regulators want from them. He continued that, if it is discovered that VLOPs do not make sufficient efforts, “or are insufficiently effective despite their voluntary efforts,” then “the legal route always remains open”.
Continuing on that point, he commented that it is not necessarily an “either-or question,” as he said that both approaches can be taken at the same time. “If agreements with Big Tech do not yield enough, we will not hesitate to enter the fray against one of them. Measure us against that,” Groothuizen concluded.