KSA Introduces a New Licensing for Skill-Based Gaming Machines

KSA Introduces a New Licensing for Skill-Based Gaming Machines

The KSA is introducing a new form of operating licence that will distinguish skill-based gaming machines from those dependent on chance. The decision marks a regulatory shift in how the Netherlands approaches machine gaming, aiming to bring greater clarity for operators while easing the application process for certain types of machines.

Until now, all operators in the Netherlands have had to apply for the same general licence, whether their machines were based on skill or chance. The single-licence system grouped traditional slot machines, whose results depend on random number generators, with skill-based games that rely largely on player input. This new measure will create a separate category for operators whose products are driven by skill rather than luck.

The regulator’s initiative follows continued requests from operators who manage only skill-based machines and have found the existing system unnecessarily complicated. Under the current structure, skill machines are subject to the same procedural scrutiny as games of chance, even though they present a different risk profile and purpose.

The KSA stated that the new licensing path would make the process simpler and faster for these operators. Since the review of skill-based machines involves a narrower regulatory scope, licence approval is expected to take less time. The regulator explained that the new category recognises the lower connection between skill-based gaming and potential gambling harm, allowing resources to be directed where risks are higher.

“This separate licence is intended to respond to a need identified by operators in the market,” the KSA noted. “Those who work solely with skill-based machines should not have to undergo the same intensive procedures as those offering chance-based gaming.”

Skill-based machines, as defined by the KSA, are those in which the player’s performance determines the course and outcome of the game. Prizes are limited to extended playtime or additional rounds, without monetary or material rewards. Classic pinball machines are cited as a straightforward example, games where precision and timing influence success, rather than algorithms or luck.

The regulator made a clear distinction between skill machines and chance machines, emphasising that anything not meeting the skill-based definition automatically falls under the latter category. In that case, the machine remains subject to the broader gambling regulations that govern randomised play.

By establishing a licence exclusive to skill machines, the KSA is not merely simplifying bureaucracy but addressing how evolving forms of gaming challenge traditional regulatory boundaries. The line between skill and chance has become increasingly complex with modern designs and technology, prompting regulators to adapt their frameworks to maintain relevance and proportionality.

The Dutch regulator’s approach can be interpreted as part of a broader trend across Europe, where oversight bodies are refining classifications to reflect both innovation and social responsibility. The introduction of this limited licence acknowledges that not all gaming machines carry the same implications for consumer protection or public policy.

From an administrative perspective, the reform could reduce strain on the licensing system and enable a more targeted review process. Applicants offering only skill-based products may face fewer delays and lower compliance burdens. At the same time, the KSA maintains its authority to monitor these machines under the same principles of fairness and transparency that guide other areas of the market.

The regulator’s move could also encourage growth within the entertainment and amusement segment. By clarifying what qualifies as a skill-based product and separating it from gambling mechanisms, the Netherlands may create a more accessible environment for arcade operators and developers seeking to introduce new formats of play. Simplified licensing can also facilitate innovation in the design of interactive games that depend on strategy, reflex, or coordination rather than random outcomes.

The reform also reinforces the KSA’s commitment to ensuring that oversight matches the risk level of each product type. By acknowledging that skill-based gaming does not carry the same behavioural risks as games of chance, the regulator aims to create a more proportionate model that supports both regulatory efficiency and market integrity.

The introduction of a distinct licence for skill-based gaming machines reflects an incremental but significant evolution in Dutch gaming regulation. It recognises that while all gaming devices operate under similar mechanical principles, their social and behavioural impact varies widely. The regulator’s decision to separate skill from chance under the law may also set a precedent for other jurisdictions exploring similar policy updates.