Both companies have temporarily ceased operations due to recent policy changes and the current opening of the market to licensed operators. The decision will impact the monthly EBITDA of both companies and the two operators are about to apply for a license to serve Dutch customers in the now regulated market. Kindred asks for further clarification on the policy changes.
Kindred Group plc has taken the decision to temporarily cease all service to Dutch citizens from September 30, the company announced. The choice was made because of the recent policy changes communicated by the Dutch Minister of Legal Protection on September 20 and the opening of the market to authorized operators, from Friday October 1..
According to Kindred CEO Henrik Tjärnström, the operator felt he didn’t have to block Dutch customers until he targeted them.. Kindred believed it had met all licensing criteria necessary to enter the Dutch market, including a ‘cool-down’ period, which was required for all licensees who previously targeted unlicensed Dutch customers.
During this whole period, operators were not allowed to be active in the Dutch market. These circumstances have changed now that the Dutch license market has been launched: therefore, the company will not accept clients until it obtains more details on its legal situation.
“Kindred’s ambition is to be a sustainable operator in the Netherlands contributing to Dutch society once a license is granted,” the company said in a press release. What’s more, the company says it is actively researching details of recent policy changes announced in the country.
Entain also announced on Thursday that it was ceasing its offer for players in the Netherlands on October 1, in line with policy changes. This move will impact EBITDA of around £ 5million per month.
Entain will submit its Dutch license application later this year and the group aims to obtain a license in the first half of 2022., in line with the company’s objective of operating only on nationally regulated markets. As of July 2019, it has been operating under the Dutch Gambling Authority’s “cooling” criteria, the group said.
In Kindred’s opinion, Minister Sander Dekker’s letter “does not explicitly ask” operators to cease services to Dutch citizens as long as the periodization criteria published in 2019 are met. “Kindred will now seek further clarification” on the intention of the Dutch government and regulator KSA, according to the group.
“The opening of the online gambling market in the Netherlands is a very positive step for everyone involved,” said Tjärnström, CEO of Kindred Group. “We are looking forward to receiving our Dutch license in 2022, and thus make a positive contribution to Dutch society as a valued expert in achieving a sustainable gaming market. “
the Dutch Gaming Authority Kansspelautoriteir (KSA) has granted iGaming licenses to 10 operators, including bet365 and GGPoker, to offer online games from October 1, 2021. Only 10 of the 29 applications submitted were approved, although more permits are expected to be added in the short term.
“We have always placed a safe gaming environment at the heart of our strategy and operations, and we already comply as much as possible with all Dutch license requirements,” added Tjärnström. “We remain fully dedicated to consumer protection, drug addiction prevention, and the fight against fraud and crime. “
Kindred is preparing for the opening of the Dutch license process under the Remote Gaming Act and has been working on the preparations for a Dutch license application, as well as having successfully completed all required audits.
Having completed the preparations, Kindred will now, “in accordance with the regulatory deadline it must meet”, apply for the Dutch license during the fourth quarter of 2021. The temporary decision to cease services to Dutch customers is expected to have a negative impact on Group EBITDA. ‘around £ 12million. per month.