EvenBet Chief Marketing Officer Alexandra Voronetskaya reveals the main issues and challenges of entering the Dutch market, and explains how to address these issues to sustain survival.
According to the KSA report, the Netherlands is a promising iGaming market, with revenues expected to reach 1.39 billion euros in 2023, and many B2B companies are looking forward to expanding in the region.
In this article, EvenBet Chief Marketing Officer Alexandra Voronetskaya will reveal the significant issues and challenges that may hinder entry into the market, and explain how to deal with these issues and challenges to maintain survival.
Three Major Challenges for Dutch B2B Companies
Basically, there could be five issues when operating iGaming business in the Netherlands, we will thoroughly study all these issues and provide several solutions to avoid these problems.
Breaking through strict advertising rules
The Netherlands enforces strict regulation on gambling advertising, recently banning most forms of such promotions.
From July 1, 2024, the regional igaming regulatory body KSA announced a law prohibiting most forms of gambling advertising, including on television, radio, print, billboards, bus stations, cafes, and within gaming venues such as casinos and slot machine shops.
The ban will also extend to gambling sponsorships of events and clubs, and will be phased out by 2025.
This ban poses a significant obstacle for iGaming B2B companies operating in the country.
B2C companies need to invest in legal and compliance resources to ensure their marketing strategies comply with local regulations. This could divert funds from other critical areas such as product development or customer support, or operators must choose products from B2B companies that know how to properly localize the platform and comply with the law.
How to overcome this challenge?
The good news is, multiple digital marketing channels are allowed, such as on-demand streaming services, social media, direct mail, and online gaming environments.
All in all, to avoid advertising issues, Dutch iGaming B2B companies can explore alternative marketing strategies that comply with the legal framework.
According to EvenBet's 2023 report, channels like social media marketing and SEO are the most popular and effective. Therefore, it is best to focus on social media marketing and SEO strategies to increase organic visibility without overly relying on paid advertising. By creating educational and high-quality content that attracts the target audience, companies can build brand awareness.
As for specific marketing channels, for the Netherlands, it is best to stick to using Instagram, Linkedin, and Facebook, which are the most popular advertising methods.
Even though these channels are allowed in the region, it is crucial to consider each platform's rules to avoid being banned and truly leverage them for profit.
Platform-based restrictions:
Instagram ads must not depict gambling as a means of financial success or an alternative to employment. The use of certain images or language that might attract minors or glamorize gambling is prohibited.
Given LinkedIn's professional nature, gambling ads must be carefully designed to meet the needs of the platform's audience. Ads should focus on the business aspect, rather than promoting gambling as a leisure activity.
Facebook has a very strict review process for gambling-related content ads.
All ads must comply with Facebook's advertising policies and local laws, which may cause delays or rejections.
Ads must be geographically targeted to ensure they are only shown to users within the jurisdiction where the operator is licensed. Facebook prohibits ads that use registration or participation in gambling activities as an incentive, such as bonuses or free bets.
Source: EvenBet Report
Complying with Responsible Gambling Requirements
The Dutch government has very strict regulations on online gambling practices, so suppliers and operators must consider multiple factors and overcome these by complying with the rules.
Licensed B2C operators have a responsibility to ensure their B2B suppliers comply with all relevant regulations, please see some of these regulations below.
Suppliers must meet specific technical standards regarding game fairness, security, and player data protection. This usually involves third-party testing and certification of games and software.
For suppliers, implementing measures to promote responsible gambling is crucial. This includes providing self-exclusion tools, deposit limits, and problem gambling support resources.
Operators must implement strict age verification processes to prevent underage gambling. Players must be at least 18 years old to participate in online gambling activities.
Suppliers need to implement anti-money laundering measures according to Dutch law. This includes customer due diligence, transaction monitoring, and reporting suspicious activities.
Compliance with the General Data Protection Regulation (GDPR) is mandatory. Suppliers must protect player data and ensure transparency in the collection, use, and storage of personal information.
Suppliers must provide secure deposit and withdrawal payment methods to ensure the safety of financial transactions.
Please be sure to follow the above rules to address this issue, for suppliers it is simple, just comply with the country's laws, while operators need to control this process.
Building Trust and Credibility
In the regulated market of the Netherlands, building trust and credibility is crucial for igaming B2B companies. Proving compliance with regulations not only ensures legal compliance but also shows a commitment to ethical and responsible operation.
Simply put, when iGaming companies provide high-quality products that satisfy customers, they are more likely to receive positive feedback. This feedback is crucial for establishing solid relationships with new customers through effective marketing.
At EvenBet, we understand the importance of customer referrals in our communication strategy. We believe they help increase brand awareness and build trust in our products. However, adjusting the format of these referrals according to different GEOs is crucial. For example, some markets respond well to written testimonials, while other markets prefer visual content like videos or Shorts for effective information understanding.
Furthermore, highlighting expertise in developing innovative gaming solutions and building solid relationships with licensed operators is a key strategy for gaining a competitive edge in the market. By prioritizing transparency, integrity, and professionalism, iGaming B2B companies can solidify their reputation as trustworthy partners in the industry.
Conclusion
If you do not fully understand all legal compliance, responsible advertising practices, and how to actually build brand visibility, then operating an iGaming business in the Netherlands could be challenging.
We hope that after reading this article, you will have a more comprehensive understanding of Dutch law and potential issues.
