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A distinctive feature of the Netherlands has always been loyalty to all sorts of entertainment that have been banned in other countries. Surprisingly, despite this, gambling for a rather long period did not receive sufficient development in this country.
The online gambling industry in the Netherlands is still in its infancy, but interest in this area is steadily growing from foreign businesses. Nowadays, the country froze in anticipation of new legislative rules for licensing online gambling. However, some details have been revealed by the Netherlands Gambling Authority (Kansspelautoriteit).
On its website, we can see general provisions of the licensing process. The purpose of this document is to help potential applicants prepare in a proper way and understand the procedures and limitations.
The specialized lawyers of IncFine analyzed this document and briefly explained some of its points. This article will be useful to those who want to open a gambling business online and obtain a license for online games in the Netherlands.
The new online gambling law is supposed to become effective in the very beginning of 2021. Since then, those who wish can apply for a license for online gambling to the Netherlands Gambling Authority.
Specific gambling licensing rules in the Netherlands are under development at the moment, but it is already known that it will cover the following types of activities:
- Casino games in which players play against the owner;
- Casino games where players play against each other;
- Rates of sporting events;
- Horse racing.
To apply for a gambling license in the Netherlands, you will need to fill out it completely, otherwise it will be rejected.
NB: when applying, you must make a payment of 45,000 euros. Consider an important nuance: applications may be rejected, but the payment made will not be returned to you. Therefore, it is advised that you strictly meet all licensing requirements.
The gambling sector regulator will consider the applications and conduct a general assessment of its compliance with regulatory legislation, based on which a decision is made whether or not to issue a license.
What to look for when filling out an application for gaming license in the Netherlands
No violations of the criminal, administrative or tax laws – this is a must for all applicants. This will apply not only to the predecessors of the applicant himself, but also to his (non) direct interested parties, as well as his directly subordinate legal entities.
Expertise
A plan should be set out on how the applicant will manage the employees and how he supports “relevant experience” in the gambling area, that is, prevention of addiction, protection of consumer rights, etc.
Know Your Player
The gambling provider is required to identify the player and check whether his personal information matches the actual identity of the player.
In addition to all these conditions, there are a number of others. For example, licensees undertake to provide financial guarantees of solvency, to have sufficient funds for the purchase and installation of software of a modern level of quality, as well as the ability to adapt to legal requirements.
Another feature of operating in this jurisdiction is that the country's gambling regulator intends to license only those operators who are purposefully working to become part of the country's gambling market. This can be expressed in constant feedback from regulatory authorities. For these purposes, the gambling regulator even developed a system in which you can fill out a feedback form on the organization’s website and thus announce the company's intention to become part of the country's gambling market, that is, come seriously and for a long time.
Participation in the formation and initial stage of the Netherlands gambling market may have advantages typical of such a period for foreign gaming companies, namely transparency and clarity of business rules, adherence to the principles of responsible gaming, and a favorable competitive environment.
Further informing
The Netherlands gambling regulator promises to continue to inform about any innovations and changes in the conditions for applying for an online gambling license. If you still have questions, contact IncFine - our specialized lawyers will provide you with full legal assistance in deciding to obtain a gambling license in the Netherlands and other European countries.
