Privatization of Dutch Lottery Deemed Unfeasible
During a committee debate on state holdings, State Secretary Van Oostenbruggen explained that privatizing the Dutch Lottery (Nederlandse Loterij) is not currently possible. Upcoming changes in gambling policy would make it unfeasible. The state cannot sell the gambling company and then change the legislation that could affect the value of the Dutch Lottery.
The committee debate on State Holdings was on the agenda for the standing committee on Finance on Thursday morning. Six committee members each had four minutes to ask questions about the state holdings. The questions were directed to Minister of Finance Eelco Heinen and State Secretary Tjebbe van Oostenbruggen.
The following members of parliament were present from the standing committee on Finance:
- Inge van Dijk (CDA)
- Henk de Vree (PVV)
- Tom van der Lee (GroenLinks-PvdA)
- Aukje de Vries (VVD)
- Folkert Idsinga (NSC)
- Henk Vermeer (BBB)
Maintaining the Current Market Structure
During their speaking time, several members of parliament also took the time to express their opinions and ask questions about state holdings Holland Casino and the Dutch Lottery. Several members indicated that they do not believe the state should be a gambling provider. However, opinions are divided when it comes to privatizing the Dutch Lottery.
First, State Secretary Van Oostenbruggen emphasized that his role only concerns the role as a shareholder of the state holdings, and not gambling policy. Van Oostenbruggen was repeatedly asked why the decision was not made to privatize the Dutch Lottery. VVD Member of Parliament De Vries referred to studies that described privatization as possible, because consumer protection interests could be guaranteed through legislation.
The State Secretary explained in his response that one of the recommendations from Teun Struycken’s new gambling policy was to leave the market as it is. The focus should be on changing the law to better protect the online gambling market. Changing the law to make the sale of the Dutch Lottery possible would therefore be undesirable at this time.
Acting in Good Faith
Shortly after, the State Secretary stated that selling the Dutch Lottery is not possible at this time, precisely because gambling policy is going to be changed. Changing the law after the state holding has been sold could change the value of the company, which is not allowed:
“(…) Selling the Dutch Lottery now and then tampering with the earning model while you already know you are going to do that. With all due respect, this is simply not possible in the business world. If you are aware of effects on a company that are very negative and can affect the price of the company, then you should be transparent about it. That will also not benefit the sales value.”
Tjebbe van Oostenbruggen
The state would not be acting as a ‘seller in good faith’ in that case, according to the State Secretary. In addition, he emphasized the cabinet’s preference to maintain some control over the online gambling market. He cited the Dutch Lottery as an example of how to deal with laws and regulations in the Netherlands.
The Teacher’s Pet
De Vries responded to those words and made a critical note. She pointed to the earlier debates in which Holland Casino and especially TOTO were frequently discussed when it comes to advertising. This would be at odds with the image of the Dutch Lottery being the teacher’s pet. According to the State Secretary, this is still possible, even if mistakes have been made at the state holding:
“Even if you are the teacher’s pet, it doesn’t mean you always get a 10.”
Tjebbe van Oostenbruggen
Van Oostenbruggen also stated that the government can steer more strictly on compliance with laws and regulations if a gambling company on the market is still state-owned. It led to a cynical remark from PVV Member of Parliament Henk de Vree. He asked the State Secretary whether there should also be a marijuana plantation in the inner garden of the ministry so that there would also be more supervision of gambling addicts.
Advertising Restrictions for Online Gambling
Another notable moment in the debate was when the discussion turned to gambling advertisements, including those made by state holdings Dutch Lottery and Holland Casino. Van Oostenbruggen informed the members of parliament that action would be taken from July 1 with a ban on untargeted advertising for online casinos:
“With regard to that advertising, we have of course recently agreed that there will be a ban on untargeted advertising for online gambling providers from July 1, 2025. No more in the newspaper, not on TV, not at sports and events. Well, that leads to something and we will monitor those effects.”
Tjebbe van Oostenbruggen
De Vree followed up by asking whether the ‘STER commercials’ would also disappear, with the Member of Parliament ultimately seeming to refer to advertisements for land-based providers and lotteries. None of those present seemed to know that advertisements for online gambling on television have already been banned since July 1, 2023. The State Secretary then reported that the STER commercials for online gambling will be banned.
Re-evaluation in the Future
Finally, the State Secretary announced during the committee debate on State Holdings that the decision not to privatize the Dutch Lottery is not final. The state holdings are periodically evaluated and the choice has been made not to privatize at this time, but this could change in the future.
Van Oostenbruggen said he was confident that the Dutch Lottery would be able to maintain its contributions, even with the higher gambling tax. The consequences of the gambling tax are also being closely monitored, he said. For now, however, the State Secretary wants the gambling policy to be adjusted first in order to see what effects this will have:
“I say very consciously: do not privatize now. (…) At the moment we are simply in an environment where there are simply a lot of problems, especially in the online area. I think we must first ensure that we solve those problems before we take a step to give a state holding that functions well into private hands.”
Tjebbe van Oostenbruggen
Stay ahead of the curve in the fast-paced online casino world – explore the latest updates and trends at listofallcasinos.com.
