The Netherlands’ Remote Gambling Act, which has come into effect on April 1, 2021, and has become a basis for the market opening six months later, has provided many opportunities for operators.
However, iGaming companies will have to comply with certain requirements. According to the Dutch news in the finance sector of the gambling industry, operators will need to separate customer funds from their businesses’ operating capital. This task issues many challenges ahead of them due to several reasons.
Experts’ opinion on the financial requirements
During the webinar “Gaming in Holland: practical solutions for separating player funds”, experts have explained the requirements for segregating customer funds and the major challenges, which operators will face.
Frank Tolboom, a Partner at Kalff Katz & Franssen, has said that the Netherlands isn’t the only country, which imposes such conditions for companies, however, they differ from other states. One of the articles of the Remote Gambling Act includes four options, which set quite difficult tasks for operators. The first one requires the bank guarantee, the second – third-party account in a bank, the third option states that a third-party foundation has to be created, and the last variant is an alternative solution. According to the speaker, the first three options are burdensome for operators. Frank Tolboom has added that they will have to upload the regulatory form specifying what option they choose. Moreover, the decision needs to be signed by the auditor.
One of the biggest obstacles in complying with the requirement is the fact that, nowadays, Dutch banks are reluctant to open accounts for operators. This is applied not only to the online sector but even to the land-based gambling establishments as well.
Karin Beumer, Business Development Manager at EM Group Netherlands, has answered the question about the management of the third-party foundation, saying that it should consist of directors who have knowledge in the gambling industry and expertise in such types of foundations. They should also be separated from operators and don’t have a relation to them to stay unbiased. The management board should avoid conflicts of interest.
Read more: Key points to know about the Netherlands’ gambling law
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