Netherlands

Gambling License

The Netherlands Gambling License, regulated by the Kansspelautoriteit (KSA), is essential for legal gambling operations in the country. Whether you're targeting the Dutch market as a B2C operator or providing services as a B2B company, this license ensures compliance with strict laws under the Remote Gambling Act of 2021. Here's a quick overview of what it takes:

• Application Fee: €48,000 (non-refundable)

• Annual Fees: 1.95% of Gross Gaming Revenue (GGR)

• License Validity: 5 years

• Key Requirements: Dutch legal entity setup, financial stability (€800,000 minimum capital), responsible gambling measures, and AML compliance.

• Types of Licenses: B2C for operators serving players directly and B2B for service providers.

• Penalties for Non-Compliance: Heavy fines, legal action, or license suspension.

Requirements for a Netherlands Gambling License

To secure a gambling license in the Netherlands, operators must meet strict guidelines set by the Kansspelautoriteit (KSA). These rules are designed to ensure a safe, transparent environment while holding operators to high standards of integrity, financial responsibility, and player protection.

Legal Entity Setup

Operators need to establish a legal entity that aligns with Dutch corporate governance rules. While many opt for a Dutch limited liability company (BV) due to its legal benefits, other structures are also allowed if they meet the criteria. The entity must demonstrate:

• Compliance with Dutch corporate governance rules

• A transparent ownership structure

• A clear organizational hierarchy

• Systems for regular financial reporting

Financial and Operational Standards

The KSA requires operators to meet financial benchmarks to ensure stability and safeguard players. Here’s a breakdown of the key requirements:

In addition to these, operators must have secure payment systems, strong IT security, effective data protection measures, reliable customer support, and ensure all games are tested for fairness.

Responsible Gambling and AML Policies

The KSA emphasizes responsible gambling and robust anti-money laundering (AML) practices. Operators are required to:

• Integrate with Cruks (Centraal register uitsluiting kansspelen)

• Offer tools like self-exclusion, deposit limits, and reality checks

• Conduct thorough customer due diligence and monitor transactions

• Implement systems to report suspicious activities

• Provide staff with detailed training on compliance

• Keep comprehensive records of all compliance measures

All application documents must be submitted in Dutch. The KSA carefully evaluates these policies during the application process and continues to monitor them throughout the license period. Failing to meet these standards can result in rejection or penalties.

These requirements ensure operators are equipped to meet the challenges of the Dutch gambling market while maintaining compliance.

Pros and Cons of a Netherlands Gambling License

The Dutch gambling market has seen impressive growth since the Remote Gambling Act came into effect in 2021. With monthly revenue hitting €81.4 million and an 85% channelization rate achieved within just a year, it's clear that this market is thriving.

Pros and Cons Table

The Dutch market's channelization rate of 85% in just 12 months surpassed the regulator's target of 80% within three years. Now, 8 out of 10 players choose legal operators, showcasing the market's maturity.

Operating in this market comes with its challenges. Companies need to invest heavily in responsible gambling tools, anti-money laundering systems, player protection measures, compliance audits, and Dutch-language support. These requirements have caused financial strain for some major operators.

The financial pressures highlight the importance of carefully evaluating the costs and benefits of entering this regulated and expanding market. It's essential to fully understand these factors before diving into the specific license options available in the Netherlands.

Application Process Steps

The application process highlights the KSA's dedication to ensuring a secure and fair gambling environment in the Netherlands. Since the introduction of the Remote Gambling Act in 2021, the steps have become more organized and clear.

Application Preparation

Operators need to prepare a range of detailed documents, such as:

• Business registration and organizational paperwork

• Financial records proving stability

• Operational policies and procedures

• Technical details of gaming systems

• Plans for compliance and responsible gambling

Most documents must be translated into Dutch by a certified translator, though some technical documents can remain in English.

Application Submission and Review

Applications are submitted through the KSA's online portal, along with all required documentation and proof of Cruks integration. The review process typically takes six months but can extend to a year for more complex cases.

During the review, the KSA evaluates:

• Integrity of the operator

• Financial stability

• Operational readiness

• Commitment to responsible gambling

• Technical system compliance

Approved operators are granted a five-year, non-transferable license. The process demands a considerable financial commitment, including costs for system inspections, regulatory supervision, and addiction prevention measures.

With the application process covered, the next step is understanding the distinctions between B2C and B2B licenses in the Netherlands.

B2C and B2B License Types in the Netherlands

Once the application process is complete, operators need to choose the license type that fits their business model. The Dutch gambling market provides two options: B2C (Business-to-Consumer), aimed at operators serving players directly, and B2B (Business-to-Business), designed for service providers like software developers and platform suppliers.

Requirements for Each License Type

B2C Operators
B2C license holders must prioritize consumer protection, which includes:

• Connecting with Cruks for player exclusion.

• Using tools that promote responsible gambling.

• Conducting regular financial audits and submitting reports.

• Following strict AML (Anti-Money Laundering) protocols.

B2B Operators
B2B license holders focus on delivering secure and compliant services, such as:

• Ensuring technical systems are reliable and data is protected.

• Submitting regular compliance reports to the KSA.

• Guaranteeing their services align with Dutch regulatory standards.

Companies can apply for both licenses but must keep operations separate and meet the specific requirements of each license. The KSA performs thorough audits of game fairness, IT security, and financial practices to ensure all operators meet the required standards.

Knowing the differences between these licenses is crucial for operators planning their compliance and renewal strategies in the Dutch market.

License Renewal

Renewing a gambling license in the Netherlands requires strict adherence to the procedures and timelines set by the Netherlands Gambling Authority (KSA). The process is designed to ensure operators meet ongoing regulatory requirements.

A Netherlands Gambling License is valid for five years, and operators must start the renewal process at least four months before the license expires to avoid any operational interruptions. Renewal requires submitting updated financial audits, system certifications, and compliance reports. Additionally, operators must pay an annual regulatory fee of 1.95% of Gross Gaming Revenue (GGR), which applies throughout the license period, including during renewal.

Documentation Requirements

Key Compliance Areas

Operators must meet KSA standards in areas such as financial stability, technical systems, responsible gambling practices, and anti-money laundering (AML) protocols. The renewal process focuses on proving ongoing compliance through updated audits, certifications, and operational documentation.

Tips for Staying Compliant

To ensure a smooth renewal process, operators should:

• Keep detailed records of all compliance-related activities.

• Ensure all required documents are available in Dutch.

• Conduct regular internal audits to identify and resolve potential issues.

• Stay informed about the latest KSA regulatory updates.

Missing the renewal deadline can lead to severe penalties or even license revocation. Timely renewal not only allows operators to continue their legal operations but also demonstrates their commitment to player protection, regulatory adherence, and maintaining credibility in the Dutch market.

Understanding the renewal process and staying on top of compliance requirements is crucial for uninterrupted operations and alignment with the KSA's strict standards.

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Gambling Regulations in the Netherlands

The Remote Gambling Act (KOA), which came into effect on April 1, 2021, introduced a detailed set of rules for gambling activities in the Netherlands. This legislation brought online gambling under the supervision of the Netherlands Gambling Authority (KSA), reshaping the industry.

Remote Gambling Act

One of the key updates includes mandatory deposit limits starting October 1, 2025: €350 for players aged 25 and older, and €150 for those under 25. Minister Teun Struycken has also announced plans for a policy update in March 2025, aimed at addressing "undesirable financial incentives."

The KSA has outlined its enforcement priorities for 2025, which include:

• Investigating unlicensed gambling operators

• Keeping a close eye on social media promotions

• Ensuring compliance by third parties like affiliates, internet service providers, and payment processors

Taxation

The gambling tax rate, currently set at 30.1% of Gross Gaming Revenue (GGR), will increase to 34.2% in 2025 and 37.8% in 2026.

The KSA aims to maintain a 90% player revenue retention rate within the legal market by balancing enforcement with strategies for market growth. However, these regulatory changes, particularly around taxation and compliance, are reshaping the costs and timelines for operators looking to enter or renew their licenses in the Netherlands.

Costs and Timelines

Fees

Entering the Dutch gambling market comes with upfront and ongoing costs. The application fee is €48,000, which is non-refundable regardless of the outcome. Beyond this, operators must provide a financial guarantee of €830,000 to cover potential liabilities like unpaid taxes or fines.

Regular expenses include:

• Annual renewal fees of 1.95% of Gross Gaming Revenue (GGR)

• Gambling tax: Currently 30.1% of GGR, rising to 34.2% in 2025 and 37.8% in 2026

• Compliance-related costs, such as implementing responsible gaming measures, data protection protocols, and anti-money laundering (AML) systems

Processing Time

The Dutch Gambling Authority (KSA) usually processes applications within six months. However, more complex cases can take up to a year. Processing times depend on factors such as:

• How complete the application is

• The quality of submitted documentation

• The complexity of the business structure

• How quickly applicants respond to KSA inquiries

Applications must be submitted digitally in Dutch, using OCR-enabled PDFs with a resolution of at least 300 dpi. Foreign operators are required to translate all documents into Dutch using a sworn translator based in the Netherlands, except for specific ICT-related documents and contracts written in English.

Once granted, licenses are valid for five years. Operators must stay compliant during this period to avoid penalties or even license revocation. These financial and time commitments highlight the need for careful planning and thorough preparation when entering or operating in the Dutch gambling market.