Netherlands renews lottery monopoly for five years amid legal uncertainty

The landscape of Dutch gambling regulation is currently witnessing a significant development. The Kansspelautoriteit (KSA) has officially renewed three monopoly licenses for state-owned Lotto B.V. for a five-year period. Starting January 1, 2027, these licenses grant the operator, a subsidiary of Nederlandse Loterij, the exclusive right to offer lottery games, instant lotteries like scratch cards, and land-based sports betting. While online gambling was liberalized in 2021, these specific sectors remain under state control for now.

The regulator found itself in a difficult position. An ongoing appeal at the Administrative Jurisdiction Division of the Council of State is currently evaluating whether these monopoly models comply with domestic and EU law. The KSA admitted it would have preferred to wait for the court's decision. However, with the current licenses expiring on December 31, 2026, the authority acted to ensure there is no gap in the legal supply of these games. According to official statements, providing timely clarity for the operator was paramount.

Numbers and facts

The new licenses come with additional safeguards regarding player protection and the prevention of underage gambling. A critical provision involves the ownership structure: if Lotto B.V. were to be privatized, the KSA must reassess the appropriateness of the license award. This regulatory move follows a 2023 ruling by the EU General Court, which sided with the European Gaming and Betting Association (EGBA). The court found that the European Commission had failed to adequately investigate whether the Dutch lottery system involved unlawful state aid through its non-transparent licensing process.

"The court has confirmed what we said all along: the Commission must investigate state aid complaints thoroughly and cannot take shortcuts. This case demonstrates that the Commission must fulfil its responsibilities as guardian of the treaties." - Maarten Haijer, Secretary General of the EGBA

Background

The Dutch gambling framework is largely rooted in the 1964 Gambling Act, which established state monopolies. While Holland Casino holds the monopoly for land-based casino games, Nederlandse Loterij manages the lottery sector. The EGBA has been challenging this lack of open tender since 2016, arguing it violates EU competition principles by excluding private operators. Should the Council of State rule against the current system, the KSA has outlined potential contingencies. Licenses could lose their exclusivity, allowing competitors to apply, or be revoked entirely after a transition period of at least one year to facilitate a transparent tender process.

Why it matters for German players

For players in Germany operating under the 2021 Interstate Treaty on Gambling (GlüStV 2021), this Dutch case provides an important parallel. Germany has a central authority, the GGL, which allows private competition in online slots and sports betting while maintaining a state monopoly on traditional lotteries. The Dutch development shows that these state-run structures are under increasing pressure across Europe. German players using GGL-licensed sites benefit from strict limits, such as the 1,000 Euro monthly deposit cap and the 1 Euro per spin limit on virtual slots. However, the legal challenges in the Netherlands suggest that the justification for state monopolies is being scrutinized by European courts.

What it means for GGL-licensed casinos

Operators holding a German license must monitor these cross-border legal shifts. If monopolies in neighboring countries like the Netherlands fall, it increases the pressure on other EU member states to ensure fair market access. For companies on the GGL whitelist, this trend potentially validates their move into regulated, competitive environments. The transparency now demanded in the Netherlands mirrors many aspects already present in the German market, such as the LUGAS and OASIS systems. Nevertheless, the issue of state aid and how lottery proceeds are distributed remains a topic that could eventually lead to legal challenges within the German lottery sector as well.