Dutch trade body concerned over illegal gambling market growth
The Licensed Dutch Online Gambling Providers (VNLOK) trade body has raised alarms regarding the rising illegal gambling market in the Netherlands, following the Kansspelautoriteit (KSA)’s recent report indicating a channelisation rate of merely 50% for H2 2024.
In its spring report released this Monday, the KSA disclosed that the gross gaming revenue (GGR) for H2 2024 fell by 10% compared to the first half of the year. This decline is attributed primarily to the implementation of new protective measures on October 1st, 2024.
Under the new regulations, players are now restricted to depositing a maximum of €700 (£601.28/$796.24) in any given month. Additionally, a stricter limit of €300 has been set for players aged 18 to 25, targeting the protection of younger gamblers.
The KSA’s revised methodology resulted in an estimated channelisation rate for licensed operators at 58% for H1 2024, which unfortunately dropped to 50% in the latter half of the year.
Despite this drop, the average number of registered player accounts remained relatively stable, increasing to 1.19 million from 1.1 million six months earlier. This stability, the KSA noted, can be attributed to higher-value players opting for illegal gambling solutions to circumvent the newly imposed deposit limits.
The VNLOK’s review of the KSA’s findings revealed “both positive and concerning trends.” The trade body expressed its apprehension regarding bettors gravitating towards illegal markets, which offer insufficient player protections.
Helma Lodders, chair of VNLOK, stated: “The significant turnover growth in the illegal market suggests that high-stake players are increasingly opting out of the regulated environment. This trend is alarming, as these players are at a heightened risk for gambling-related issues.”
Increase in Player Participation in the Illegal Market
The KSA’s recent regulatory measures appear to be yielding positive results, as noted by a reduction in accounts reporting losses exceeding €1,000 per month, which dropped from 4% to 1.2%. Concurrently, the average monthly loss per player account decreased to €83 from €113.
While VNLOK recognizes this progress as a positive step, it raises significant concerns regarding the fate of the funds previously lost in the legal market.
“The data implies that a portion of this demographic has transitioned to illegal gambling avenues,” emphasized Lodders. “This merely displaces the problem rather than resolving it. Therefore, there is a necessity for enhanced monitoring and enforcement strategies to align with evolving player behaviors.”
Moreover, VNLOK is particularly troubled by the increasing prevalence of online gambling among young adults.
Despite constituting only 9.4% of the adult population, young adults account for 22% of active gambling accounts—a statistic indicative of their rising engagement with online gambling platforms.
“While their average monthly loss is €42 less than that of older players, the disproportionate number of young adults actively gambling underscores the popularity of online gambling within this age group,” remarked VNLOK.
“We urge continuous monitoring of this demographic and recommend close observation of how new regulations influence their gambling behaviors.”
The Dutch government is currently in the midst of revising its gambling legislation and is expected to present a new Remote Gambling Act to parliament by the year’s end.
In February, State Secretary for Legal Protection Teun Struycken proposed raising the legal age limit for online slot players to 21 in an effort to shield younger adults from engaging in high-risk gambling activities. However, this proposal has faced resistance from stakeholders, who express concern that such restrictions may inadvertently drive these players to the unregulated black market.
