Dutch Parliament Comprehensively Revamps Lottery Ahead of Opening the iGaming Market

While the world waits for iGaming regulation in the Netherlands, the authority is harnessing revenues through adapting the lottery framework for 2021.

Ministry

The project is being headed by Dutch Minister for Legal Protection Sander Dekker.

Parliament Report Suggestions

In response to a new PricewaterhouseCoopers (PwC) industry report, Minister Dekker announced to the Dutch Parliament plans to install the framework during Q1 2021, in advance of the Netherlands planned opening of its regulated online gambling market later in the year.

Opening the Lottery Market

This will open the market to competition between the state-owned Staatsloterij and Lotto and charitable lotteries competing alongside online casino and sportsbook products for the first time.

About the Report

The galvanizing PwC report set out to examine changes necessary to ensure the sustainability of the Dutch lottery market when the Remote Gambling Act comes into force—schedule to open January of next year, and to private operators from July.

Enhancing Competition

The PwC report took issue with otherwise limited competition between different lottery products, concluding that the introduction of new products would foster healthier competition.

Competitive Benefits

PwC asserted that an increase in competition would spur operators to pursue greater efficiency and innovation, which would convert to higher payout percentages across the greater product ranges.

Low Social Risk

PwC identified the main barrier to sustaining successful growth as social risks, which if “properly mitigated, market growth and more advertising are not necessarily problematic.”

In terms of consumer protecting consumers from gambling-related harm, PwC called risks associated with lotteries lower compared to other forms of gambling, with lotteries barely viable for money laundering, providing reasonable expectation that the current regulation of Dutch authority Kansspelautoriteit (KSA) will convert effectively to the enlarged market.

Safe Model

PwC further approved of the protective capacities of existing rules for transparency and advertising, due to the difficulty of unlicensed operators remaining undetected by the KSA.

Charitable Dimension

The report also suggested a specific compulsory charitable contribution from licensed lottery games to ensure ongoing support.

Outlook

With Minister Dekker pledged to work with the Secretary of State for Finance to develop a lottery framework adapted to PwC's research, it looks like the Dutch market is finally prepared for the long-awaited opening of the Dutch market which the lottery revamping precurses.