To combat illicit online gambling operators that operate internationally, the Netherlands Gambling Authority (KSA) has proposed an ambitious plan for a global enforcement network called ‘gambling Interpol.’
During his speech at the International Association of Gaming Regulators conference in Toronto, KSA Chair Michel Groothuizen urged regulators to collaborate across national borders.
He suggested a Europe-wide enforcement structure that could ultimately become global, stating, “We are battling a 21st century war with medieval tech” and highlighting the difficulty of pursuing rogue operators due to jurisdictional constraints.
Despite opening its legal online market in 2021 following years of legislative debate, the Netherlands still faces challenges related to unregulated gambling, which is why Groothuizen is calling for action.
The market’s transition to digital gambling has facilitated adaptation and enforcement evasion for illicit operators.
Policies designed to protect internet freedom initially limited the KSA’s regulatory authority, preventing it from directly blocking websites that violated the law.
Challenges Facing Dutch Market and Regulatory Cooperation
Unlicensed operators swiftly take advantage of regulatory gaps by changing domains and using forceful marketing strategies, particularly through social media campaigns and affiliate links.
The legal sector’s market share has fallen below 50%, according to recent data, which means that half of gambling revenue now goes through illegal channels.
Tighter advertising and deposit regulations in the regulated sector have made this trend worse.
Groothuizen pointed out that even though these limitations are meant to safeguard consumers, they might unintentionally make unlicensed operators stronger.
The goal of the KSA’s proposed gambling Interpol is to enable information sharing, investigation coordination, and coordinated action against unregulated operators by international gambling authorities.
Additionally, it would unite payment processors and tech companies that support these initiatives.
Uniform enforcement guidelines and comprehensive data-sharing frameworks could be modelled after current European cooperation initiatives, such as those related to player protection and anti-money laundering.
Groothuizen’s suggestion reflects the growing understanding that the global nature of digital gambling demands cross-border enforcement and harmonized oversight standards, as the Dutch experience is now a case study in the dangers of regulatory overcorrection.
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