2018/2019/2020: GETTING READY FOR REGULATION?
EVERYTHING YOU NEED TO KNOW ABOUT THE UPCOMING REGULATION OF THE NETHERLANDS MARKET FOR REMOTE ONLINE GAMING & GAMBLING.
Population in Millions
Gambling market size incl. lotteries.
Revenue from online (2012).
Annual growth of online revenue.
Per capita GDP exceeds UK and Germany
Year that the current Law on Games of Chance was drafted and implemented. Last update in the ‘90. That’s 20 years ago.
Ministers of Justice that have been in office since work on the law law was started. This spans 4 government terms.
Number of pages of replies to parliamentary questions regarding the proposed changes. This was just the pre-review….
Number of people working for the Dutch Gaming Commission. This includes board members, enforcement agents and clerks.
The Senate has the final vote on the new law. It is expected that the debate and voting will take place in Q1 this year.
Our money is on
Q4 2017. Q3 2018 😉 Somewhere in 2020. The law will (hopefully) be in effect by then. Obtaining the actual licenses can take a lot longer. Months even.
GAMBLING IN THE NETHERLANDS: SOME MORE NUMBERS
Dutch people playing online games of chance
Again, the Market Size Netherlands in Millions (EUR)
Number of Parties that have shown an interest in obtaining a license
- Gambling Games played on mobile devices as part of total 62%
- Likely tax rate applied for both online and offline gambling. 29%
- Online revenue on gambling as part of total market (2015) 13%
Poker revenue as part of total online
Casino revenue as part of total online
Sportsbetting revenue as part of total online
Weekly hours online (Age 18-24)
Tablet use (Age 18-24)
Weekly hours online (Age 25-34)
Tablet use (Age 25-34)
Marketing spend Holland Casino (2015).
Marketing spend Staatsloterij (2015).
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SO WHAT DOES THIS ALL MEAN FOR YOU?
With the new law on games of chance currently being reviewed in the Dutch Senate, the final stage of regulation of one of the last markets in Europe in near. When asked to step forward, over 250 interested parties have indicated to the Dutch Gaming Commission that they had the intention of applying for the upcoming licenses. Have you thought about your market entry strategy yet? We guess you have or are at least thinking about it now, otherwise you wouldn’t be reading this.
>> First of all: is it really happening this year?
The short answer is yes. The last stage of the complex and slow political process has begun. The Dutch Senate needs to agree to the new law (they can’t make any changes to it anymore at this stage). After that final vote, the Law will be published and its effective date will be set. The big question on everyone’s mind however, is when the Dutch Gaming Commission will start handing out the actual licenses.
>> Ok, so when can I start?
That obviously depends on when you’ll obtain your license. Most operators seem to aim for a soft launch in Q4. That seems an eternity still, but if you are serious about you planning, that last quarter of 2017 should be getting a lot of focus. In the mean time, a lot can and should be done already in order to come well prepared to that initial battle for the Dutch online players.
>> Who will try and obtain a license?
Everyone you would expect, plus a few more. Large operators such as PokerStars, Unibet, Betsson, Betfair and William Hill will be among the first to try and obtain a license. There have been 250 individual parties that have indicated to consider applying for a license. It is safe to say however that eventually, a group of approx. 50 contestants at most will be seriously trying to get a piece of the pie.
>> Who should I look out for?
Good question. Global powerhouses such as PokerStars and all the large online bookmakers are known to us all. But what about the local players? Holland Casino has been eager to start offering online gaming for some time now. Then there is the State Lottery, who merged with the Lotto in 2016 to form the Nederlandse Loterij.
As you can see from our nice little infographs above, both Holland Casino and Staatsloterij have serious marketing budgets to spend each year. We know for a fact that these budgets far exceed those of online operators, even the bigger ones. What these incumbent players lack in online experience, they make up for with hard-hitting budgets, well established relationships with all the major commercial media as well as some very interesting cross-sell opportunities. In France, and in some ways even Italy, the local players came to the playing field well prepared and quickly scooped up large proportions of market share. With the extremely long time the Dutch land based operators have had to prepare, it is likely that they will have nothing less than the same ambition: quickly become market leader in their respective fields of business.
What these incumbent players lack in online experience, they make up for with hard-hitting budgets, well established relationships with all the major commercial media as well as some very interesting cross-sell opportunities.
>> So how do I compete once this market opens up?
For starters reading this article is a good step in the right direction. Here’s a couple of tips and strategies that we feel are valuable for all operators, big or small.
1. Plan ahead
This may sound cliché, but budgets need to be allocated and media strategies need to be prepared. Initiate talks with potential publishers or broadcasters before the end of Q1.
Look for local affiliates, there are hundreds of them eager to get back in the game. Spots take time to plan: Q4 is a busy time in TV land. Get to know the difference between the networks. Did you know that the Dutch broadcast spots on the public channels?
We don’t suggest you paint your website orange, but do not underestimate the power of a good localised offering. That celebrity football endorser may work well in the U.K., but a local hero is always loved better.
Make sure your translations are of high quality. Know when the local holidays are. Dutch people get paid around the 21st each month. So you know when to send out that bonus mail.
3. Know the differences
Sure, a round of billboards in the London subway will get you a lot of exposure. But in Amsterdam people ride bikes. Also talk about Cheltenham, Six Nations or wickets and Dutch people will have no clue.
Talk about a round of low 30’s and they will want to bet on it however. Hint: ice skating is really not that boring. Neither is field hockey. Oh and don’t forget: we love football. But you knew that.
The best tip: hire us!
If you are looking for effective, innovative Marketing campaigns that have seriously strong ROI’s yet are based on realistic budgets that are tailored to your brand, look no further. We know how to sell gaming, wether it is poker, casino, sports or even bingo. We’ve been doing it for over 8 years for some really serious companies. Ask around. We come highly recommended.