Navigating through Success: Strategies for Gaining Altitude and Overcoming Turbulence

Online gambling regulation in the Netherlands was first discussed in 2009, but it was only launched in October 2021. The licensed operators were different from what the industry had expected, including both local incumbents like Nederlandse Loterij and Holland Casino, as well as international brands like Bet365 and Tombola. Surprisingly, some notable names like Entain, Betsson, 888 Holdings, and Kindred Group chose to pull out of the market. Director of digital transformation at Holland Casino, Jeroen Verkroost, described the influx of players as a “deluge,” which put significant strain on the casino’s limited staff. Sam Depoortere, business director for NLO’s Toto sportsbook and casino, acknowledged that the private operators having to wait for licenses was a pleasant surprise but noted that the illegal market is still a concern. He mentioned that channelization (the percentage of players choosing regulated operators) is currently around 65-70%, whereas the goal was 85%. Despite some challenges, the market opening proceeded in phases, favoring the first wave of operators. These circumstances have given established local operators like Holland Casino and NLO an advantage, as they have already captured significant market shares. However, with the approval of license applications for private operators such as Kindred Group, the landscape may change. It is yet to be seen whether the local operators’ head start will endure in the face of competition. Additionally, advertising regulations have become stricter, with new laws set to prohibit the use of role models in gambling ads and impose a wider ban on untargeted advertising starting in 2023. Despite perceptions of a gambling advertising boom, estimates suggest that the number of online gamblers in the Netherlands is not as high as initially thought. Moreover, efforts have been made to self-regulate the advertising volume within the industry, and some operators have already reduced their advertising activities. As more operators enter the market, the effectiveness of these self-regulatory measures and the government’s new restrictions will be tested. Ultimately, maintaining high standards and fostering a safe gambling environment will be crucial for the industry’s long-term success.