Dutch Regulator KSA Warns JOI Gaming of Significant Fines for Advertising Violations

The Dutch gambling regulator, Kansspelautoriteit (KSA), has recently taken a strong stance against JOI Gaming for using several "role models" in its gambling advertisements. This move could potentially cost JOI Gaming up to €1.0 million (£840,903/$1.1 million) in fines. The KSA's actions reflect its commitment to enforcing strict advertising rules within the Dutch gambling market.

The Case of Jack’s Racing Day

The issue centers around JOI Gaming's promotional activities for the Jack’s Racing Day motorsport event. The advertisements in question featured various role models, although the KSA did not disclose their identities. These role models were depicted in several promotional scenarios, such as dressing as hostesses in corporate attire emblazoned with the Jack’s logo. These adverts appeared on the Jack’s Racing Day website and its social media channels, remaining live at the time the charges were brought.

Additionally, the role models were involved in signing caps that bore the event logo and the Jack’s brand name. Images of these signed caps were widely used as part of the event's promotional campaign. According to a ruling dated June 27, which was only recently published, these adverts were found to be in violation of Dutch law. Consequently, the KSA has ordered JOI Gaming to immediately remove all related promotional materials.

The KSA has set forth severe penalties should JOI Gaming fail to comply with the removal order. JOI Gaming faces a daily fine of €50,000, with a cap at €250,000. Moreover, if the company repeats the violation before or during future Jack’s Racing Day events, the fine increases to €200,000 per day, reaching a maximum of €1.0 million.

The KSA emphasized the importance of these regulations, stating, “To protect vulnerable groups such as young people and risk and problem players, strict rules apply to the use of role models for gambling advertising. KSA keeps a close eye on the market and takes immediate, strict action to protect vulnerable groups such as young people.”

Role Model Advertising Ban Explained

The Netherlands has enforced a ban on using role models in gambling advertising since June 2022. This regulation applies to all licensed operators in the Netherlands, excluding charity and state lotteries. The KSA defines a role model as anyone in the public eye, including celebrities, former professional athletes, influencers, and models. The rule prohibits these individuals from promoting high-risk games of chance, such as casinos and online gambling.

JOI Gaming is not the first to face consequences under this advertising ban. Over the past two years, other operators have been penalized for similar violations. For instance, two operators were warned to use the voices of famous Dutch personalities in their advertisements. In one case, a celebrity's voice was featured in a television advert, while the other involved a podcast. Both operators withdrew the ads following the KSA's warnings, avoiding further action such as cease-and-desist orders.

In another notable case from November 2022, the KSA issued a formal warning to the National Postcode Lottery for using a well-known celebrity in advertisements for its Deal or No Deal lottery game. The identity of the celebrity was not disclosed by the KSA.

The KSA's approach to regulating gambling advertisements is part of a broader international trend. In June 2023, the French regulator l’Autorité Nationale des Jeux announced a ban on using athletes’ images in gambling communications. This was part of a larger set of sponsorship regulations for sports teams and included non-binding recommendations for gambling sponsorships.

Similarly, Finland has proposed a ban on influencer marketing in its draft gambling reform plan. This proposal is part of an initiative to open the country's gambling market by introducing a licensing system for operators.

The KSA's warning to JOI Gaming highlights the stringent regulatory framework governing gambling advertisements in the Netherlands. With substantial fines and strict enforcement measures, the KSA aims to protect vulnerable groups from the potential harms associated with gambling. The role model advertising ban is a crucial aspect of these efforts, mirroring a global trend among regulators to tighten controls on gambling promotions.

Source:

''Dutch regulator raps JOI Gaming for using role models in adverts'', igamingbusiness.com, July 15, 2024.