Ksa Chairman Groothuizen Warns Big Tech Over Illegal Gambling Ads

Five years after the regulated online gambling market launched in the Netherlands, the Kansspelautoriteit (Ksa) faces a significant regulatory hurdle. While the vast majority of Dutch gamblers have transitioned to legal platforms, a staggering amount of money remains within the illegal circuit. Michel Groothuizen, who took over as Chairman of the Executive Board, is now spearheading a new strategy to tackle this financial parity. The focus has shifted toward Very Large Online Platforms (VLOPs), which continue to host prohibited advertisements targeting vulnerable demographics and minors in violation of Dutch law.

The challenge lies in the sheer scale of the opposition. Tech giants like Google and Meta possess nearly inexhaustible financial resources, making immediate litigation a risky and potentially decade-long endeavor. Groothuizen, drawing on his extensive background in law and public administration, has adopted a dual-track approach. By combining constructive dialogue with the threat of legal action, he aims to force these platforms into compliance without getting bogged down in endless courtroom battles. The ultimate goal is ensuring that the digital environment respects the player protection standards established by the Dutch government.

Numbers and facts

According to Ksa data, the Dutch market has achieved a remarkable 90% channeling rate in terms of player count. However, the financial reality is less encouraging. Groothuizen revealed that for every euro spent in the legal market, roughly one euro is still gambled in the illegal sector. This financial split suggests that high-stakes players or those with gambling addictions are still being successfully courted by unlicensed offshore operators who bypass national regulations.

To combat this, the Ksa has established a joint task force in Dublin involving high-level representatives from Google and Meta. The primary objective is the development of a legal white list of EU-licensed operators. This list would enable platforms to use automated systems to block any gambling ads originating from unlisted entities. This initiative follows intense pressure from parliamentarians like VVD MP Bart Bikkers and legal experts such as Justin Franssen, who argue that the European Digital Services Act (DSA) provides the necessary leverage to fine tech companies for hosting illegal content.

Background

Michel Groothuizen is well-equipped for this regulatory battle. He holds Master’s Degrees in Law and Public Administration from Leiden University and previously served as Deputy Director of the Netherlands Custodial Institutions Agency. His experience managing the Netherlands Institute for Forensic Psychiatry and Psychology (NIFP) provides him with a unique perspective on the intersection of law and behavioral health. Since the Dutch market opened in 2021, the Ksa has shifted its focus from merely issuing licenses to proactive market supervision and international collaboration.

„Pursuing legal action against opponents with inexhaustible financial resources could lead to protracted multi-year court battles with uncertain outcomes." - Michel Groothuizen, Chairman of the Kansspelautoriteit

This pragmatic stance explains the Ksa's current preference for the Dublin task force over immediate fines. A voluntary system that works today is viewed as more effective than a court victory that might take five years to achieve. Nevertheless, Groothuizen has made it clear that the regulator’s patience is not infinite and legal proceedings remain a viable option if platforms fail to cooperate voluntarily.

Why it matters for German players

The developments in the Netherlands are closely watched by regulators in Germany. The German Interstate Treaty on Gambling 2021 (GlüStV 2021) faces similar issues regarding the visibility of black market operators. If the Dutch task force succeeds in creating a robust automated blocking system for Google and Meta, it could serve as a blueprint for the German Gemeinsame Glücksspielbehörde der Länder (GGL). For German players, this means that the digital wall against unlicensed casinos—which ignore the 1,000 euro monthly deposit limit and the 1 euro per spin rule—will become significantly stronger across the EU.

What it means for GGL-licensed casinos

For operators holding a GGL license in Germany, the Dutch push for Big Tech accountability is a welcome development. Legal casinos currently compete on an unlevel playing field, as illegal operators often use aggressive and deceptive advertising on social media to lure players. An automated whitelist filter on platforms like Facebook and Instagram would drastically reduce the reach of these illegal competitors. This would stabilize the legal market and ensure that advertising budgets are spent in an environment where player protection and tax compliance are guaranteed.