Key Moments:
- Michel Groothuizen, Chair of Kansspelautoriteit (KSA), has called for a worldwide enforcement alliance to combat illegal gambling
- Legal gambling’s turnover share in the Netherlands has dropped below 50%, despite over 90% of players channeling through regulated sites
- Experts express mixed opinions on the practicality of a “Gambling Interpol,” but recognize the urgent need for greater coordination
Regulated Market Faces Growing Threat
Michel Groothuizen, who leads the Dutch gambling authority Kansspelautoriteit (KSA), has raised concerns about increasing challenges facing the licensed gambling sector. Having established systems like a central data vault and the Cruks exclusion register after online gambling became legal in the Netherlands in 2021, Groothuizen notes that the evolution of the digital landscape has surpassed original expectations. The massive wave of advertising that followed legalization, described as an “advertising tsunami,” led to regulatory interventions, including a ban on untargeted ads, which has curbed some exposure. However, Groothuizen warns that a total advertising ban could unintentionally funnel players to unregulated sites lacking consumer protections.
While player channelization to legal platforms currently exceeds 90%, the share of industry turnover managed by the licensed sector has now fallen below 50%. This implies that nearly half of gambling expenditure in the Netherlands is channeled to unlicensed websites, a situation Groothuizen describes as highly concerning.
Proposal for a “Gambling Interpol”
To address these cross-border challenges, Groothuizen advocates for the creation of a Europe-wide – and eventually global – enforcement body, drawing a parallel to an international “Gambling Interpol.” He highlights that unauthorized operators use a variety of innovative tactics, from leveraging social media and influencers to employing dark-web techniques, rendering it difficult for any single authority to respond effectively. Groothuizen states, ”battling a 21st century war with medieval tech.”
He emphasizes the need for collaboration with major technology and financial companies. According to Groothuizen, “blocking visibility and payment routes sharply reduces the attractiveness of illegal sites.” He asserts that if digital platforms and payment providers step up their monitoring and restrict illegal activity, it would significantly disrupt rogue operations.
Early Stages of International Cooperation
KSA has started to enhance collaborative efforts both with domestic licensed operators and international regulators. The authority recently entered into an agreement with its UK counterpart, recognizing significant overlaps in the entities targeted by each jurisdiction. For instance, Groothuizen notes that six of the top twenty illegal operators in the UK also appear in the Dutch top ten, underscoring the importance of a shared response.
| Jurisdiction | Number of Shared Top Illegal Operators |
|---|---|
| Netherlands & UK | 6 out of 20 |
Industry Perspectives on a Unified Enforcement Network
The idea of a “Gambling Interpol” has drawn mixed reactions from industry observers. Supporters argue that cross-border coordination is not only achievable but necessary, stating, “Illegal operators don’t care about borders. Regulators shouldn’t be confined by them either.” They claim a centralized enforcement hub would expedite action against illegal operations.
Conversely, skeptics point out the complexities stemming from varying interpretations of gambling legality across jurisdictions. Differing definitions of “illegal” make universal cooperation challenging, even if collaborative intentions are strong.
Despite differences in opinion regarding the feasibility of a global enforcement body, there is consensus on the need for increased coordination, especially through measures such as shared blacklists, harmonized payment-blocking strategies, and real-time data sharing. These steps could form the foundation for more comprehensive international collaboration in the future.
Conclusion
The formation of a single global body for gambling enforcement may remain out of reach. Nevertheless, building a robust international network for enforcement and cooperation is both necessary and within grasp, according to the industry’s leading voices.
- Author
Daniel Williams
