Dutch Gambling Licenses to Mandate Operator Exit Plans
Introduction of Mandatory Exit Plans for Dutch Gambling Operators
The Dutch gambling authority, known as Kansspelautoriteit (KSA), has established a new condition for all operators seeking remote gambling licenses within the country. Starting from January 1, 2026, businesses applying for new licenses or renewing existing ones must submit detailed exit strategies explaining how they plan to withdraw from the Dutch market once their license expires.
Requirements for Withdrawal and Ongoing Compliance
The exit plan must outline the process operators would follow to cease all gambling activities in the Netherlands, particularly if they decide not to renew their license after the initial five-year term. This plan is now a compulsory part of every license application and renewal request.
Additionally, operators are required to provide documentation describing how they will keep the regulator updated on any changes to their operations or policies promptly. This documentation must accompany a risk assessment addressing compliance with anti-money laundering (AML) and counter-terrorist financing (CTF) laws as specified in the Act on the Prevention of Money Laundering and Terrorist Financing.
KSA has warned that failure to comply with these new rules could lead to the rejection of license applications, including those from companies that have previously been licensed in the Dutch market.
Context of the New Regulations
These updates are introduced as the Netherlands approaches the fourth anniversary of its regulated online gambling market, which officially launched on October 1, 2021. Operators who received their first licenses early on are nearing the end of their initial five-year license period and must apply for renewal by October 2026 to continue their operations legally.
Distinct Evaluation for License Renewals
Renewal applicants will undergo a different review process compared to new applicants. This includes a reexamination of their advertising strategies, measures to prevent gambling addiction, and the implementation of a control database test to ensure compliance.
The authority has also cautioned operators who faced compliance issues within the last five years that such violations could negatively affect their renewal prospects. These operators must explain the lessons learned from previous mistakes and detail measures to prevent future issues.
If the explanation provided is inadequate, the renewal application may be denied or subjected to stricter conditions and limitations. Moreover, operators who do not comply with any enforceable court orders during the renewal process will automatically be considered untrustworthy, resulting in application refusal.
Recent Market Developments
In recent news, the KSA acknowledged that the recent increase in gambling taxes to 34.2% did not lead to increased revenues. Instead, both online and land-based sectors have experienced a decline in gross gaming revenues, indicating the tax change failed to meet its intended financial goals.
