Rising Illegal Online Gambling Raises Concerns in the Netherlands
In its latest report, the Dutch gambling regulator, Kansspelautoriteit (KSA) revealed that the land-based gambling market in the Netherlands is nearly back to pre-pandemic levels.
Amsterdam street view. Kansspelautoriteit worried about rising levels of illegal online gambling.
LISTEN TO THIS ARTICLE:GGR Reached €4 Billion in 2023
According to the Kansspelautoriteit, the total gross gaming revenue (GGR) for 2023 in the Netherlands reached €4 billion, a 21.2% rise compared to the €3.3 billion generated in 2022. Land-based casino games and table games led the way, accounting for 33% of the market, followed closely by lotteries, which made up 30%. In contrast, sports betting remained the smallest segment, representing only 9% of the market, with 7% of that figure coming from online betting.
The KSA also reported that online gambling has continued to grow, with online GGR in the first half of 2024 showing an 8% year-on-year increase, reaching €752 million. Of this, 72% came from online casino games, reflecting the strength of the online sector.
Illegal Market Channelization Increased in 2023
Despite these promising figures, the KSA has raised new concerns about the illegal online gambling market. The channelization rate to the illegal market rose to 95% in the first half of 2024, up from 90% in 2023. Nonetheless, the KSA projects that 87% of GGR in 2024 will go to legal gambling providers, which his only a slight decrease from the 88% in 2023, with just 13% of revenue potentially being captured by illegal operators.
In a joint statement, Helma Lodders, chair of the Dutch gambling trade association VNLOK, and Eric Konings, acting director of the Netherlands Online Gambling Association, expressed both optimism and concern.
It is encouraging that many players are finding their way to legal providers. At the same time, it is worrying that players who opt for the illegal offer spend more money there. This raises the question of whether we are succeeding sufficiently in protecting the most vulnerable groups of players, such as minors, young adults or problem gamblers. We know that the appeal of illegal gambling sites is particularly great for these groups. And recent research showed that minors can play at illegal providers without many problems. These groups are now in danger of disappearing from statistics, while they deserve extra protection.
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Netherlands Attractive to Illegal Operators
KSA chairman Michel Groothuizen echoed their concerns and said that the current market conditions make the Netherlands appealing to illegal gambling operators, which he described as “an undesirable situation.” He believes that the stricter the regulations are, the more that players will turn to the illegal market where they are at a higher risk of gambling harm “because illegals do not have to worry about the duty of care”.
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