Dutch Regulator Warns on Sports Sponsorship Ahead of Upcoming Ban
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Dutch Regulator Warns on Sports Sponsorship Ahead of Upcoming Ban

New Dutch Gambling Sponsorship Rules Set to Take Effect Across All Sports

The Kansspelautoriteit (KSA), the Netherlands’ gambling authority, has issued a stern reminder to operators about impending sponsorship regulations across the sports sector. Starting July 1, a comprehensive ban on all gambling sponsorship in sports will come into play.

In this new regulatory landscape, all forms of gambling-related sponsorship—including jersey deals and promotional arrangements with sports competitions, teams, and individual athletes—will no longer be allowed. This ban will encompass every major sport within the Netherlands, as established by recent reforms introduced by the KSA in July 2023.

The initial steps toward this ban began with restrictions on gambling advertisements in media outlets, including television, radio, and print, as well as public spaces and venues with public access. These restrictions were later expanded to cover sponsorship deals that involved programs and events.

While banning sports sponsorship was always a component of the new regulations, the KSA deliberately postponed its implementation. This delay aimed to allow existing sponsorship agreements to conclude, giving teams and athletes a chance to adjust to the forthcoming rules. Since the previous summer, however, sports organizations have been unable to forge new partnerships in this area.

As the July deadline approaches, the KSA has ramped up its scrutiny of the market, actively seeking details from online casinos regarding their current sponsorship and promotional arrangements. With just weeks to go, the authority has warned operators that it will be particularly vigilant against any violations and intends to enact "immediate enforcement action" against breaches of these rules.

Despite these strict measures, KSA representatives continue to engage in dialogue with industry associations to discuss the implications of the ban, aiming to clarify any uncertainties surrounding the regulatory changes.

KSA Chairman Michel Groothuizen emphasized the intent behind these laws. He pointed out that other countries with similar sponsorship bans often see creative attempts by gambling providers to circumvent them. However, he asserts that such evasion won’t be tolerated in the Netherlands.

"This legislation aims to safeguard young adults and other at-risk populations by limiting their exposure to gambling promotions, regardless of the source," Groothuizen noted. "At KSA, we will maintain a vigilant stance on enforcement."

Strengthening Dutch Gambling Regulations

This upcoming sponsorship ban contributes to a broader set of measures introduced by Dutch lawmakers to enhance player protection. Following the launch of the regulated market in 2021, operators have faced numerous shifts in legislation, including a prohibition on indiscriminate advertising and the imposition of online deposit limits.

Additionally, tax rates have surged, with the levy on operators increasing to 34.2% of gross gaming revenue (GGR) earlier this year and projected to rise to 37.8% next year. These onerous fees sparked significant market reactions, prompting Flutter to withdraw Tombola and LiveScore Bet to announce its exit ahead of the coming tax hikes. Even Holland Casino, once a monopoly, has indicated the potential for layoffs due to these pressures.

As further restrictions loom, including proposals for a ban on online slot games, many industry stakeholders are concerned that these measures are yet to deliver the intended results. A recent review of the Netherlands Online Gambling Act pointed out that current player protection strategies have not proven effective.

As the landscape evolves, the KSA remains committed to monitoring the situation closely and supporting responsible gambling initiatives, reflecting an ongoing effort to strike a balance between market viability and social responsibility.

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