NETHERLANDS Law and Practice Contributed by: Alan Littler, Justin Franssen and Chris Adriaansz, Franssen Tolboom
4.4 Availability of Licences Land-Based Gambling
4.6 Application Requirements Given that licences are effectively only available for charity lotteries, slot machines and remote gambling, this section focuses solely on applications for these types of licences. Integrity Assessment for Remote Gambling Applicants One of the key requirements for remote gambling licence applicants is the reliability assessment. This reliability assessment consists of a two-step approach: a reliability test and probity screening. Reliability Test The first step in the overall integrity assessment is the reliability test based on the BGA and secondary legis- lation. The NGA will investigate whether the reliability of the applicant is “beyond any doubt”. The reliability test includes relevant legal and natural persons, such as shareholders, directors, subsidiar- ies and entities that are ancillary to the applicant. The Dutch legislature takes the view that the acts and omissions of persons involved in, or surrounding, the applicant entity can affect the reliability of the appli- cant itself. Practice shows that the scope of the reliability test is broader than most applicants expect. In itself, this broad scope need not be a barrier to an applicant’s chances of success. Nevertheless, during the pro- cess of preparing a licence application, it can take some time to identify every person and entity that is considered relevant by the NGA (and then collect the necessary information). Locally Unlicensed Presence For applications made before 1 April 2022, an impor- tant element of the reliability test was the (previous) presence of the applicant on the Dutch market. For those applications, an unlicensed presence on the Dutch market would not – in and of itself ‒ automati- cally render an applicant as lacking a sufficient degree of reliability. Operators with an unlicensed presence that submit their licence application after 31 March 2022 cannot
As explained in 2. Jurisdictional Overview , there is no cap on licences for charity lotteries and slot machines and, in reality, these are the only licences that can be considered “readily available” in the land-based sphere. However, in terms of slot machines, practice will be determined by the policies of local municipali- ties. Remote Gambling The number of remote gambling licences is unlimited, but applicants will have to fulfil strict requirements on subjects such as: • the reliability of the applicant; • separation of player funds; • consumer protection (responsible gambling, adver- tising); • digital communication (a control database located in the Netherlands); • AML; and • payment transactions. 4.5 Duration of Licences The offering of slot machines requires three separate documents, with different durations. First, the slot- machine type approval will ‒ in theory ‒ remain valid unless the model has to undergo changes. Secondly, the exploitation licence is awarded by the NGA for a period of ten years. Finally, the local licences are awarded by the relevant local municipality. For cafés and restaurants that target those over 18, these licences are usually valid for between one and five years. Different premises licensing regimes apply for gaming arcades at the local level (with licensing periods of between one and 15 years, and, in ever decreasing numbers, indefinite licences). As mentioned in 4.3 Types of Licences , charity lotter- ies are in practice awarded for a period of five years. Remote gambling licences are awarded for a maxi- mum period of five years.
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