Dutch regulator grants Lotto BV five-year exclusivity

Lotto BV, the Dutch state provider of lottery games, scratch cards and sports betting, has been granted an exclusive licence extension by Kansspelautoriteit (KSA).

The current licences expire this December, with the extensions granting Lotto BV exclusive rights for five more years. The company is one of the component firms of the Dutch state-owned lottery company, Nederlandse Loterij.

However, this is subject to change due to an ongoing domestic court case filed with the Administrative Jurisdiction Division of the Council Of State, which questions the sustainability of the current Dutch monopoly structure.

The idea of the state monopoly being either disbanded or privatised to end the government’s involvement in gambling has been making the rounds for some time now, as seen during the recent debates in the House of Representatives.

Whether this will come to fruition remains to be seen, and while the Council of State’s ruling will surely not be the definitive say in that, it will certainly carry some weight for either side of the argument.

Kansspelautoriteit was initially going to wait for the final ruling before engaging with Lotto BV, but decided to go through with the extensions due to the approaching licence expiry date, saying that its job is to ensure that the legal offers remain accessible without interruptions.

Following a potential review of the state’s monopoly within the next five years, the KSA will come back to Lotto BV’s lottery, scratch games and sports betting licences for a follow-up assessment.

These can be either completely revoked or maintained without the exclusive element. The necessary amendments will be done no less than a year following the Council of State’s final decision on the ongoing court case.

Although conversations around privatisation are ongoing, Lotto BV and the Nederlandse Loterij have found themselves largely excluded from one of the more intense conversations in Dutch gambling regulation – advertising.

This could come to an end, however, as some politicians are calling for a blanket ban on all forms of gambling advertising, including the lottery.