Auditor General Criticizes Ministry of Justice and Security Over Advertising Ban
A report on accountability investigations reveals the Netherlands Court of Audit’s criticism of the Ministry of Justice and Security regarding the ban on untargeted advertising. The 95% rule for online advertising was implemented without an execution test, which the Court of Audit deems undesirable.
This week, various ministries of the cabinet shared their 2024 annual reports with Parliament. Both the Ministry of Finance and the Ministry of Justice and Security’s annual reports address online gambling.
At the Ministry of Finance, the gambling market resulted in a financial windfall. In 2024, €1.073 billion was collected in gambling taxes, €63 million more than the €1.01 billion budgeted in the 2024 budget memorandum.
Additionally, the State Lottery’s contribution to the Dutch state was €16 million higher than budgeted. Earlier this week, the Dutch Lottery shared its annual report, showing a decrease in turnover. However, because the state participation also paid out less, a higher net turnover than the previous year was recorded.
Accountability Investigations
The results of the 2024 accountability investigation were shared with Parliament as an appendix to the Ministry of Justice and Security’s annual report.
The report examines examples of execution tests that led to unenforceable policies. This was the case with the ban on untargeted advertising. The Gaming Authority reportedly indicated that the ban, as previously proposed, was unenforceable:
“Execution tests sometimes lead to unenforceable policies. The ban on untargeted advertising came about under great pressure because there was a strong political desire to introduce a ban. The ban stipulates, among other things, that untargeted advertising for gambling should not reach individuals under the age of 24. The supervisor of this ban, the Gaming Authority (Ksa), was asked for an execution test in the consultation round. The Ksa indicated that it wanted to amend the ban because it was unenforceable in the proposed form. The minister strongly amended the ban in response to critical reactions in the consultation. We find that positive.”
Auditor General
95% Rule for Online Advertising Unenforceable
The draft regulation of the final untargeted advertising ban stipulated that online advertising for online casinos should not reach vulnerable groups, such as young adults, at all. After critical reactions during the consultation period, the ban was amended. The finally implemented advertising ban stipulated that the advertising could reach a maximum of 5% of users under the age of 24.
The Court of Audit notes that the ministry did not request a second execution test from the Gaming Authority regarding the implemented 95% rule. The chosen rule would also be unenforceable according to the Gaming Authority:
“The minister allowed the heavily amended decision to take effect without asking the Ksa for a second execution test. Ultimately, the amended ban is also unenforceable according to the Ksa. For example, the amended ban contains a provision that 95% of untargeted advertising should not reach individuals under the age of 24. The Ksa indicates that this percentage is not verifiable.”
Auditor General
Undesirable Situation
In the report, the Court of Audit is therefore critical of the Ministry of Justice and Security. The ministry reportedly implements policies without the necessary execution tests much more often than other ministries, which is described as an ‘undesirable situation’:
“We find this an undesirable situation and therefore assess this as an imperfection in policy preparation. The policy area of a ministry such as Justice and Security, where cooperation by various implementing organizations in chains is necessary, requires careful policy preparation. This imperfection leads to problems with the implementation of new regulations. We already saw with the ban on untargeted advertising that there are unenforceable rules.”
Auditor General
In a response to the Court of Audit’s conclusion, Minister of Justice and Security David van Weel stated that it was known that the 95% rule regarding advertising for online gambling sites was difficult to enforce. This was taken into account in the decision-making process, and the decision as a whole would be enforceable:
“However, he does not follow our conclusion about non-enforceability based on the execution test during the creation of the Remote Gambling Untargeted Advertising Decree. According to him, the decision as a whole is enforceable by the Gaming Authority. Only the part that relates to determining the maximum percentage of young adults reached by online advertising for remote gambling cannot be properly enforced. He writes that this obstacle was known and taken into account in the decision-making process.”
David van Weel, Minister of Justice and Security.
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