Dutch regulator launches open tender for tote racing licence
New transparent bidding process follows pressure from courts and operators
The Dutch Gaming Authority (KSA) will launch a digital tender for an exclusive five-year tote betting licence in late November.
The regulator will be accepting applications through its website from 29 November for the right to operate the pari-mutuel racing product from 2017 to 2022.
The existing contract with Sportech expires at the end of 2016.
The forthcoming tender process will have two phases, with applicants assessed against a to-be published criteria and on their ability to “provide a reliable tote”.
The winning bidder will be allowed to offer an online version of the product – although remote gaming is yet to be regulated – as long as the online version replicates the offline offer.
The open tender process follows a series of appeals from gambling operators in Dutch courts, who challenged the existing non-transparent licensing procedure.
However, industry stakeholders have questioned the timeline of the new process, with the regulator leaving just over a month between the launch of the tender and the expiry of Sportech’s contract.
Fintan Costello, a managing partner at Dutch-facing consultancy Revenue Engineers, said it was unlikely the new licence would be issued on 1 January.
He said: “We’d expect to see a temporary extension to the current license while the process continues, which will probably take three to six months.”
One operator, speaking on condition of anonymity, told EGR the announcement was an “interesting development”as it could mark a move towards fuller racing regulation, but was “not a major step forward”in and of itself.
Earlier this year, the lower house of the Dutch parliament passed a bill to regulate widespread online gaming in the country, but the bill is stil awaiting a vote in the Senate.