Netherlands gaming authority intervenes on sponsorship violations

Neha Soni November 5, 2024

SiGMA news

Gambling sponsorships in the Netherlands have faced stricter regulations since 1 July 2024, aimed at protecting vulnerable groups. The Dutch Gaming Authority (KSA) introduced these rules, which now limit gambling providers to sponsoring sporting events under specific conditions.

The KSA oversees compliance, acting as the regulatory authority to monitor and enforce advertising standards. Providers are held accountable for all their sponsorships and advertisements, including instances where third-party entities are involved, such as event organisers or sports merchandise sellers.

Three notable cases

Three notable cases emerged soon after the new rules were implemented. Each situation involved a breach of the updated advertising restrictions, where gambling brands were found displaying logos or promotional materials to unintended audiences, highlighting areas where the industry must improve its compliance efforts. In the first case, a gambling provider’s contract for a national event had expired, but the event organiser continued displaying the brand’s promotional materials. This oversight led to a violation of the new rules. Upon receiving a warning from the KSA, the provider acted quickly to ensure its branding was removed, demonstrating the responsibility providers bear even in expired contracts. In the second incident, gambling branding appeared during a sporting event where young people participated in pre-event activities. Although these youths were not part of the main event, the visible logos still reached a younger audience, violating the KSA’s restrictions. The KSA emphasised that providers must prevent such exposure, even if indirect. The third case involved a sports merchandise shop selling shirts with a gambling brand’s logo in children’s sizes. After the KSA raised concerns, the provider adjusted to prevent its logo from appearing on youth apparel, showing a proactive response to maintain compliance with the new guidelines.

Authority’s approach

The Dutch Gaming Authority expects providers to take responsibility for every aspect of their sponsorship activities. Clear, enforceable agreements with external partners are vital for preventing unintended advertising exposures. This approach reflects the broader expectations of the KSA for providers to remain accountable for their brand visibility. While the KSA has so far issued warnings for these initial breaches, repeated violations could lead to more severe consequences, including financial penalties or potential restrictions on advertising rights. The KSA’s stance indicates a readiness to act if gambling providers do not adjust their practices accordingly. These regulations are gradually reshaping the sponsorship strategies within the gambling industry. With stricter guidelines, providers must now adopt responsible advertising practices to prevent harm to vulnerable audiences. In turn, this could improve the industry’s public image, building trust among consumers and regulatory bodies alike.