KSA issues ultimatum to operators over World Cup gambling ads
The regulator of gambling services in the Netherlands – The Kansspelautoriteit (KSA) – has issued a stern warning to all operators about the recent prevalence of gambling ads. The countdown for the FIFA World Cup 2022 has begun, with the mega event less than 20 days away, and the KSA has issued a warning to operators about cutting down on the frequency of their advertising push ahead of the event.
There is a ban on untargeted ads in the Dutch market, but operators have tested their luck as it sets in only next year. ©Fauzan Saari/Unsplash
Almost all gambling operators expect a favorable spike as the tournament inches closer, and they’ve been advised to make sure the frequency is ‘moderate’. The barrage of online gambling advertisements forced the Gambling Policy Minister Franc Weerwind to intervene after being nudged by the House of Representatives. An untargeted advertising ban for such promotional activities has already been confirmed in the Netherlands previously. However, it comes into play on January 01, 2023. Operators have purportedly tested the limits in the lead-up to that ban, but have now caught the attention of the authorities as a result.
The Dutch regulator has specifically asked operators not to bombard digital and media platforms with their untargeted ads as they will prove ineffective. Furthermore, the KSA states that Dutch models, influencers and former athletes should not be a part of these ads. Minute details have been put under the microscope by the regulator, and that is making operators sweat because non-compliance could lead to costly consequences. The KSA is expected to be the most vigilant during the World Cup, keeping an eye out for unlicensed operators in particular. Sanctions will be imposed on those found to be breaching the laws.
The KSA directive focuses on these points in particular:
- Role models, influencers, and ex-professional athletes should not be deployed in ads.
- These ads should not target vulnerable groups (minors and young adults).
- Not all forms or types of online betting are legitimate in the Netherlands (Bets on events like the first yellow card, first corner, etc. in a football match violate the law and the KSA will take strict action against it).
- Illegal operators and offers will be met with immediate sanctions.
Don’t make the industry look bad, says KSA Chairman
The KSA’s chairman, René Jansen, chimed in on the issue in the statement. Jansen suggested that while online gambling had been made legal, the aim was to create a holistic and safe environment for those who want to bet; the barrage of untargeted gambling advertisements after legalization, he said, “had not helped” with what he considers a largely negative view of the industry among Dutch residents. He suggested that ad targeting and execution needed to be more subtle and smart, and went on to expand on this in a blog post that society has a tolerance limit.
“I just hope the underlying message gets through to the gambling providers. That is: there is a limit to what society accepts. This was clearly exceeded by the sector after the opening of the legal online gambling market. The industry as a whole and individual gambling companies individually have not excelled in displaying well-considered behavior. Earning money quickly and gaining additional market share should not be considered more important than carefully and jointly building a sector where consumers can enjoy recreational and controlled participation in games of chance in a safe environment. On the contrary! An old Dutch saying applies here: better to turn halfway than to be completely astray. A new tidal wave of advertising would mean an extra blow to the image of the sector and perhaps the prelude to even more far-reaching regulation of what is allowed in the field of advertising. I’d say don’t let it get to that point.”– René Jansen, Chairman, KSA, Official blog
KSA keeps a tight leash on the industry
The KSA has kept a sharp eye out for illegal online gambling activity and unlicensed online gambling providers. Severe penalties have been issued in the past. Lately, online gambling providers LCS Limited and MKC Limited had fallen in the crosshairs of the KSA. After thoroughly examining their respective websites, it was found that creating a player account from the Netherlands was possible.
This activity was in direct violation of the directive that states games of chance providers that do not have a Dutch license must ensure that their offer is not accessible from the Netherlands. The providers were asked to pay $163,000 and $83,000 respectively, but chose instead to fold operations in the country altogether.
Dutch role models adhere to ban
As mentioned earlier in the article, the KSA directive has imposed a ban on Dutch celebrities in gambling advertisements or promotional campaigns. Apart from a couple of incidents, no famous individuals have appeared or attempted to appear in any gambling ad on any platform.
Two providers received warnings for not respecting the ban. In an effort to find a loophole, the providers used just the voices of famous Dutch individuals. However, exclusively using the voices of celebrities without any video involvement is also prohibited under the ban, so the providers had to stop before the imposition of corrective sanctions. Exemption from the ban is only applicable to charity lotteries, state lotteries, and the lotto.
