The Dutch regulator de Kansspelautoriteit (KSA) has warned licensees about the use of games to promote gambling products and is bound by the advertising rules set out in the Remote Gambling Act.
KSA said it witnessed an increase in the number of licensees using so-called promotional games of opportunity to attract customers to online gambling services.
According to regulators, promotional games refer to ways to increase sales, such as putting prize codes in soft drink bottle caps, and social media campaigns where users like posts that participate in prize draws. I am.
These are permitted in the Netherlands without permission, but must comply with the rules set out in the Remote Gambling Act.
Luck-driven promotional games are categorized as games where consumers can win prizes but don’t have to pay to participate. To provide these games in line with regulations, operators must ensure that participation is free and consumers do not incur any costs by participating, except for communication costs up to 45 cents. ..
Other criteria include that the game is only used once a year to promote a product, service, or organization. Parental consent is required for minors to participate, but the game may need to be coordinated for younger groups.
The maximum prize pool for a game is € 100,000, but for games offering prize packages of € 4,500 or higher, up to 20 draws are possible. You also need to create a general terms of use and let participants know.
In addition, promotional games must comply with relevant national gambling advertising rules.
“these are [rules] It’s there to protect consumers from the risks associated with luck-dependent games, such as the development of gambling addiction, “explained KSA. “Therefore, advertising may not target, for example, minors, young adults, and other vulnerable groups.
“From now on, KSA will closely monitor the promotion games of the game of chance. If a breach is found, there is a risk of enforcement action.”
The warning comes after the Dutch government released details this month about a ban on “untargeted” gambling ads. This will ban broadcast advertising from the beginning of next year and will not allow sponsorship from the beginning of 2025.
After January 1, 2023, businesses may not place advertisements on television, radio, or public spaces, indoors or outdoors. After January 1, 2024, sponsorship of television shows and events will be prohibited.
Meanwhile, sports shirts and venue sponsorship will be banned from January 1, 2025.
It was also announced that operators will only be able to place ads online if they “do not reach” vulnerable groups, especially gambling addicts and people under the age of 24.
This ad has been restricted for some time, and Dutch Minister of Justice Franc Weerwind has promised further restrictions since the market opened last year.
