Dutch regulator KSA keeps legal action against Big Tech open over illegal gambling ads

Michel Groothuizen, Chairman of the Dutch gambling authority Kansspelautoriteit (KSA), has said that every option is under consideration to make large technology companies answerable for illegal gambling advertising that reaches Dutch consumers. He made the remarks in a blog post marking five years since the Dutch online market was re-regulated.

Groothuizen described illegal gambling adverts on social media as a persistent problem for the regulator over the past year. The most prominent examples have been on Facebook and Instagram, both owned by Meta. The dispute has escalated to the point where VNLOK, the trade body for licensed online gambling operators, has summoned Meta to court. VNLOK claims, based on its own analysis, that 90% of all gambling ads on Facebook in the Netherlands promote illegal operators. VNLOK Chairman Björn Fuchs told SBC News it was extremely disappointing to see so little activity from Meta.

Groothuizen argued that if the companies facilitating such advertising continue to fall short, the KSA should be able to reprimand them, at a minimum with a financial penalty. Using an analogy, he said a sheriff who misses, or who turns out to be armed with a toy gun, gives bandits free rein. He noted that Big Tech earns considerable revenue from illegal gambling providers' ads in the Netherlands, Europe and worldwide, and that imposing strict limits on themselves runs against their revenue model, yet that is what the regulator demands.

Despite the strong language, the chairman stopped short of announcing a full legal campaign against Big Tech or Very Large Online Platforms. He pointed out that these companies have deep pockets and could stretch a court battle over many years.

The KSA will instead start with a collaborative approach. One example is its current partnership with Google, in which both sides are working on a white-list of EU-licensed operators. Such a list could then be used to actively block the promotion of all others online.

Groothuizen added that the legal route remains open. If the platforms do not make sufficient efforts, or their voluntary measures prove ineffective, the authority is prepared for a confrontation. He said the KSA would not hesitate to take the fight to one of them if agreements with Big Tech yield too little.