Dutch Regulator Prepares Dual Approach of Cooperation and Potential Litigation Against Social Media Platforms Over Illegal Gambling Ads

Dutch gambling authorities are weighing a dual strategy of cooperation and potential legal action against social media platforms that continue to carry illegal gambling advertisements.

Michel Groothuizen, chairman of the Kansspelautoriteit (KSA), outlined the challenges in an article on the regulator’s website. He compared social media platforms to “bandits” that won’t easily relinquish the revenue from such ads, which he described as a multi-billion dollar industry contributing significantly to their profitability.

Groothuizen stated that authorities can gather sufficiently convincing evidence of these platforms facilitating prohibited activities. Advertisements explicitly targeting vulnerable people in exclusion registers or children are common, with thousands if not hundreds of thousands of such ads. Both Dutch law and the European Digital Services Act offer grounds to impose punishments.

Weighing the Costs of Litigation

The KSA chairman cautioned that initiating legal proceedings involves significant risks. A lost case could be worse than not starting one, providing the “bandits” a free pass. Tech companies possess practically inexhaustible financial resources and will fight all the way to the highest court, litigating every piece of evidence. Any final judgment could take five years, with the outcome uncertain despite the high stakes.

Pursuing Voluntary Agreements Alongside Preparations

Nevertheless, the KSA continues to seek voluntary cooperation. Groothuizen referenced a meeting in Dublin earlier this year that established a joint task force with European regulators, Google and Meta. The task force is developing a whitelist of all legal providers in the EU, allowing platforms to ban others by definition.

He made clear there are no permanent allies in these companies, whose interests are often diametrically opposed to regulatory goals. If voluntary efforts prove insufficient, the legal route remains open. This balanced approach mirrors the complex dance Western governments perform with Big Tech across various issues.

As reported by Focus Gaming News, Groothuizen emphasized that seduction is not an exclusive alternative to fighting; regulators must prepare for confrontation while pursuing agreements.

Reporting: Focus Gaming News

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