The Dutch regulator announces a competition for a license to pari mutuel

The Dutch Gaming Authority (KSA) has opened the process to operators interested in obtaining the country's only betting license for horse racing.

There is currently only one betting license available, which acts as a legal monopoly.

The current license expires June 31, 2022 and is owned by ZEbetting, a subsidiary of Sportech.

Later this year, KSA will begin an "open and transparent" tender process for a new license.

The new license will be issued for a period of five years.

The license allows you to bet only on horse racing and only on the parity system. This excludes fixed odds bets or betting exchanges.

The license is limited to retail rates only and will be subject to a new licensing system introduced as part of the Dutch Remote Gaming Act (KOA).

“The licensee must contribute a portion of the gross gambling income to the equestrian industry,” the KSA said in a statement.

“The level and form of this fee is likely to resemble that of horse racing gambling revenue under the Remote Gaming Act,” the regulator added.

The KSA has confirmed that applications will first be assessed against eligibility and experience criteria, followed by a selection phase.

It is understood that most of these requirements will be based on the licensing requirements contained in the KOA.

Each applicant will be required to pay a €32,000 application processing fee, which must be paid in advance.

If the application is rejected, no refund will be made. Prospective operators are encouraged to contact the Dutch regulator.

In June 2020, Kindred Group won a legal appeal against KSA over the favoritism shown by ZEbetting in its equal license application.

In November 2016, KSA began a "transparent award process" for a five-year betting license, allowing other operators to compete alongside the incumbent.

On this basis, Kindred's subsidiary Trannel submitted but later withdrew its application after Kindred concluded that the license would be re-granted to the incumbent operator.

Complaining, the Kindred sued the KSA over the contest, losing their original case until a later successful appeal of the decision.

The judges of the administrative division of the Dutch Council of State ruled that competing firms could not properly compete for the license due to the conditions set by the KSA at the time.