ShareThe lottery operator for the Netherlands will remain in government hands as there is still no intention to move towards privatization, and the government remains consistent with its policies on gambling.
Impact on the Dutch gambling market
The news that Nederlandse Loterij would not be privatized was issued during a heightened period of market scrutiny regarding gambling in the Netherlands. Currently, there is an increase in enforcement within the sector. Ever since the market opened for online gambling, the Dutch Gambling Authority has kept a close eye on -and actively managed- operators’ compliance with advertisement standards and responsible gambling policies.
To consumers, and especially the most active group, consumers online, the government’s presence and continued engagement in the lottery system may be deemed a positive and stabilizing factor. Unlike private operators who draw the player’s attention through marketing and bonuses (some offer 50 free spins without deposit), state Lotteries tend to maintain a more conservative approach, which makes this sector more stable, devoid of volatility. Politicians view this as an important distinction in comparison to the commercial side of gambling.
Market intelligence from KSA shows that revenues from online gambling in the Netherlands surpassed €1.3 billion in 2023, with over 1.1 million player accounts active by year’s end. In this context, Nederlandse Loterij operates both as a governmental direct provider and a symbol of government monopoly gaming. It continues to capture a considerable portion of the market, especially with its Toto sportsbook and Lotto offerings.
Lectoren has speculated that the reason for not privatizing Nederlandse Loterij tells us that the Dutch government is still reserved about permitting greater private participation in gambling activities outside the online casino and betting domains that have liberalized.
The government outlines reasons for maintaining ownership
The state has confirmed it will not lift the burden of ownership from the Netherlands Lottery (Nederlandse Loterij). This was made evident through a letter addressed by Minister of Finance Steven van Weyenberg to the lower house of parliament, where he noted once again his plans to keep the lottery within public ownership.
The Nederlandse Loterij was formed in 2016 with the merging of De Lotto and Stasslotterij and is solely owned by the government of the Netherlands. As stated by van Weyenberg, much of the rationale supporting the retention of ownership is based on the protection of public interest. For one, the government considers the lottery system an indispensable asset in managing gambling addiction and also in ensuring funds are available for social as well as sporting activities.
The Nederlandse Loterij, in its report for the year 2023, noted that it made contributions of over €195 million towards the Dutch Exchequer, sports bodies and charitable bodies. The availability of such funds is one of the reasons why the government policy is not to consider privatisation.
Concerning government ownership, public control guarantees better supervision of responsible gambling as well as stronger enforcement of the standards for player protection initiatives, which has become a growing concern with the increased liberalisation of the Dutch gambling market after the Remote Gambling Act came into effect in 2021.
Reactions from industry stakeholders
Reactions coming from the Dutch gambling industry have been relatively subdued. Some private operators felt frustrated that the lottery system would continue to be shielded from competition, while other industry players have described the decision as not surprising, given the government’s position has been since 2016.
The Netherlands Online Gambling Association NOGA which represents licensed operators, stated that while a diverse gambling market stimulates competition for operators, public health and responsible play should always come first. NOGA did not reject the decision but suggested that equal enforcement of advertising and consumer protection rules should apply to public and private operators alike.
Charities and sports organizations that benefit from Nederlandse Loterij's sponsorship have expressed their satisfaction with the decision. For them, the certainty of continued support within the existing framework is far more important than the possible advantages of a competitively privatized lottery system.
Every so often, the opposing parties in the Dutch parliament seem to question whether there continues to be any logic in the state monopoly on lotteries now that there is some competition from online operators. Still, no formal attempts at any motions aimed at privatization have captured much attention in recent years.
What does this mean for private operators?
Private operators have always been faced with stringent regulations in the Dutch market, and this decision to keep Nederlandse Loterij state-owned does not alter these conditions. For now, this means there will be no integration of private bidders into the lottery sector, and the remaining control by the state entity over both traditional and online lottery products will continue.
As far as the implications for private operators are concerned, it underlines a disruption: they compete among themselves in the online casino and sportsbook segments, but are barred from participating in the lottery vertical – a segment that still captures a wide player audience and boosts steady revenue.
In practical terms, operators will need to adopt different approaches to carve a niche for themselves, such as compliance transparency, customer experience, and responsibly crafted promos. At this point, the government’s move provides clarity for potential alterations in the framework of the national lottery structure, at least temporarily.
There are no signs of a legislative overhaul any time soon, but they remain active, watching to see if increasing online participation in games of chance will eventually catalyze a shift in the Dutch gambling ecosystem's public-private dynamic. For the time being, the communication from the finance ministry is unambiguous: the lottery remains public property.
