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Speel Verantwoord, a lobbying group for online gambling in the Netherlands, has once more called upon the government to enact changes to current legislation.
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There has been an ongoing debate since 2010 about changing the online gambling laws in the country. However, nothing of substance has been achieved to date, despite a bill passing the lower house of parliament.
As a result of this lengthy process, there are numerous restrictive measures in place that are undermining the government’s goal, which is to direct players towards licensed platforms.
Since 2010, more than 1,000 parliamentary questions have been tabled about this issue and there have been numerous coalition agreements and subsequent amendments.
Regulations in their current form are distorted and the current offering of online gambling is unappealing. This is leading to players going towards illegal operators en masse.
Speel Verantwoord claims that existing regulations face practical problems when the implementing them and consumers are poorly protected. The lobby group is calling on the government to review all measures.
Dutch gambling history
Gambling has always been a popular activity in the Netherlands. Online gambling, in particular, has been a big draw in recent years, but it has not come without a myriad of issues.
There has been extensive debate regarding online betting regulations since 2010. The issue lay dormant for a couple of years before being reinvigorated during summer 2018.
In 2016 the Remote Gambling Bill was passed by a large parliamentary majority.
Part of the legislation recommended a 29% tax for land-based and online gambling revenues. There will also be a further 1.5% tax that will fund the country’s regulatory authority, the Kansspelautoriteit (KSA). Finally, another 0.5% will go towards helping problem gamblers.
A number of other measures in this bill were contentious. The KSA is no longer able to block the IP addresses of those using unauthorized gambling sites.
This is because there are more drawbacks than benefits associated with using this approach. There were also some measures regarding curtailing the gambling companies’ advertising practices.
Why the delay?
The Senate has been looking at this bill ever since the lower house of parliament passed it in 2016. In June 2018, the Minister for Legal Protection, Sander Dekker, wrote to the lower house in relation to the measures her ministry would be taking to ensure that licensed online operators in the country would be able to protect consumers significantly.
Many hope that this will help to kickstart the issue once more. Dekker pointed out that those who receive an online license should have a physical presence in the country if they do not have a presence in the European Union.
There has been significant opposition to expanding online gambling in the Netherlands. Opposition parties have expressed concerns about the negative impact a legal online offering would have on the population.
Hefty fines
While the bill continues to languish in the Senate, the KSA is actively rounding up illegal operators in the country. It has issued multiple six-figure fines against illegal online casinos that are targeting Dutch users.
In early November, it fined Honeydew Trading Ltd (Cyprus-based) and CyberRock Entertainment NV (Curacao-based) $395,000 each.
The two companies have the same owner and were operating seven different gambling sites that target Dutch residents. These are: Vegasdays.com, Vanguardscasino.com, Eurofortunegames.com, Casinofiz.com, Supremeplay.com and Play2wincasino.com.
The KSA claims these platforms were almost completely Dutch through their choices of language and their Dutch-friendly payment processor.
Potential fines can be as high as $960,000, which will put off a lot of operators from targeting Dutch players. One of the more prominent online casinos, 888 Casino, has stopped its operations in the Netherlands as a result of these strict regulations. It doesn’t want to be on the receiving end of such a significant fine.
In the latter half of 2018, the regulators have been ramping up their enforcement of regulations. The most positive expectations with regards to the passing in the Senate of the Remote Gaming bill place the earliest date at July 2020.
The regulator will undoubtedly continue going after errant online casinos while the country’s politicians deliberate over the online gambling bill.
November was a stabilizing month for the New England casino industry. After three months, the region’s existing casinos seem to be adjusting to the two new casino properties in Springfield, Massachusetts, and Tiverton, Rhode Island.
Year-over-year revenues at three of the four southern New England casinos fell for the third consecutive month, but the decline was far less precipitous than it had been in September and October.
More importantly, the new casinos are significantly growing the overall market, adding some $20 million per month to the region’s collective haul.
Players benefit from New England casino competition
Another interesting development is a shift in slot-hold percentages at multiple casinos. With Plainridge Park and the Connecticut casinos returning 92 percent to slot players, MGM’s slot RTP has crept up from 90 to 92 percent since it opened its doors in late August.
Even the extremely stingy Twin River is adjusting to the increased competition, as its slot RTP has risen from 85 percent to 86 percent.
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A closer look at this month’s slot revenue
New England slot revenue November 2018:
- Mohegan Sun Casino, CT: $44,264,700
- Foxwoods Casino, CT: $35,287,300
- Twin River Lincoln, RI: $34,646,200
- MGM Springfield, MA: $13,371,900
- Plainridge Park Casino, MA: $12,852,300
- Twin River Tiverton, RI: $7,555,900
- Oxford Casino, ME: $5,351,300
- Hollywood Casino, ME: $2,919,400
| # Slot Machines | Average RTP | |
|---|---|---|
| MGM Springfield | 2,550 | 92% |
| Plainridge Park | 1,200 | 92% |
| Foxwoods | 4,100 | 92% |
| Mohegan Sun | 4,800 | 92% |
| Twin River Lincoln | 4,200 | 92% |
| Twin River Tiverton | 1,000 | 92% |
| Oxford Casino | 950 | 90% |
| Hollywood Casino | 725 | 90% |
A closer look at this month’s table game revenue
Table game revenue November 2018:
- Twin River Lincoln, RI: $11,574,436
- MGM Springfield, MA: $7,876,010
- Twin River Tiverton, RI: $2,142,535
- Oxford Casino, ME: $1,066,209
- Hollywood Casino, ME: $718,188
| # Table Games | # of Poker Tables | |
|---|---|---|
| MGM Springfield | 120 | 23 |
| Plainridge Park | N/A | N/A |
| Foxwoods | 250 | 100 |
| Mohegan Sun | 300 | 42 |
| Twin River Lincoln | 93 +48 Stadium Games | 23 |
| Twin River Tiverton | 32+18 Stadium Games | N/A |
| Hollywood Casino | 18 | 4 |
| Oxford Casino | 28 | N/A |
State-by-state casino revenue breakdown
Massachusetts
It’s still early, but MGM Springfield is shaping up to be a $20-$25 million/month property.
More importantly, its impact on Plainridge Park seems negligible. Plainridge’s year-over-year revenue has been relatively steady since the opening of MGM. The racino is even flirting with the idea of petitioning the state for the remaining casino license that the Massachusetts Gaming Commission shelved after a proposed tribal casino in Taunton fell through.
Connecticut
October was a tough month for the two Connecticut casinos, with year-over-year revenue falling 10 percent at Foxwoods and Mohegan Sun. Both properties were down again in November, but by 6.8 percent and 8 percent respectively.
Considering the new competition the two casinos are dealing with, those declines could be seen as wins.
Of course, with a third and much grander casino (Encore Boston Harbor in Everett, MA) opening in June, Foxwoods and Mohegan aren’t out of the woods yet.
Rhode Island
Twin River owns and operates both Rhode Island casinos, and after relocating Newport Grand’s casino license to its new Tiverton location, monthly gaming revenue has quadrupled.
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And neither the new Tiverton property or MGM Springfield seem to be having an impact on the company’s flagship property, Twin River Lincoln. In fact, Twin River Lincoln saw revenue rise year-over-year in November, the first southern New England casino to pull that off since the new properties opened their doors.
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Rhode Island also gave its casinos an assist when it legalized sports betting. Both properties’ sportsbooks are now up and running, with which will further add to their revenue tallies going forward.
Maine
They may technically be in New England, but Maine’s two casinos are far enough away that the opening of the two new casinos has had little impact on their operations.
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So, for the most part, it’s been business as usual at Hollywood Casino and Oxford Casino.