KSA reports falling GGR in 2024, following deposit limits
The Dutch regulatory authority, Kansspelautoriteit (KSA), has recorded a notable decline in the gross gaming revenue (GGR) of the legal gambling market following the enforcement of new deposit limits, notwithstanding an increase in the overall number of accounts.
In its comprehensive spring report, KSA revealed that the GGR for the full year 2024 rose to €1.47 billion ($1.58 billion/£1.2 billion), reflecting a year-on-year increase of 6%. However, a deeper analysis reveals a troubling trend: the GGR for the latter half of 2024 dropped by 10% to €697 million, compared to the first half. This analysis encompasses the 12-month period ending December 31, 2024.
These results have been significantly influenced by KSA’s protective measures that were implemented last October. The authority noted, “This decrease is likely attributable to two key factors: the spike in activity during the European Football Championship in June 2024, and the newly established regulations aimed at enhancing player safety within the online gambling landscape.”
The recently instituted regulations introduced specific deposit thresholds linked to a player’s net deposits within a calendar month. If a player’s net deposits exceed €700 (£583/$777) in any given month, operators are mandated to restrict further deposits. Additionally, a lower deposit limit of €300 has been set for individuals aged 18 to 25. Players have the option to appeal for heightened deposit limits by providing verifiable proof of sustainable higher income.
Interestingly, despite the new restrictions, data indicates an uptick in account numbers, with the average number of accounts increasing from 1.1 million to 1.19 million. KSA estimates that around 788,000 players were actively engaging with licensed providers in the past six months, which corresponds to approximately 5.4% of the adult population in the Netherlands.
Understanding Online Channelisation
Historically, KSA has assessed that the channelisation of players toward online legal offerings stood consistently at 91%, as the majority of participants opted for licensed operators. However, a reevaluation utilizing a new methodology rooted in the Dutch lottery system, measuring market value, has revealed that GGR channelisation is considerably lower than previously expected.
Under this revised approach, KSA estimated the GGR channelisation rate to be 87% for 2024, based on insights provided by advisory firm H2 Gambling Capital. More startling, the channelisation based on the new methodology indicated only 58% in the first half of 2024, dipping further to an alarming 50% in the latter half post-implementation of the deposit restrictions.
KSA speculates that while problematic gambling has diminished among legal operators, a segment of high-value players may have migrated to unregulated platforms, with an alarming 50% of total market losses now attributed to illegal operators. “The implementation of these policy rules has successfully curtailed excessive gambling behavior among legal operators,” KSA stated in its findings released in February.
Moreover, the agency has observed a decline in the number of players incurring losses exceeding €1,000, contrasted by an increase in the proportion of accounts with losses below this threshold. “It is probable that high-stakes gamblers have transitioned to unlicensed providers, whereas recreational players predominantly engage with legal entities,” KSA emphasized.
The Dominance of Online Casino Games
According to KSA’s latest report, online gambling—especially the “casino games against the house” segment—accounted for an impressive 75% of total GGR in the second half of 2024.
In contrast, GGR from sports betting displayed inherent volatility, frequently swinging in response to major events such as the European Championship. Notably, KSA observed that the sports betting segment experienced the least decline following the initiation of deposit limits.
Prior to the introduction of the new player protection measures, KSA reported that accounts engaging in both sports betting and casino games exhibited the highest average losses. However, this disparity ceased to exist post-October; the authority noted, “There is no longer a distinction between accounts focusing solely on casino games and those participating in sports betting.” In fact, losses for accounts exclusively engaging in sports betting were found to be lower than those recorded for casino game players.
This complete analysis underscores the evolving landscape of the Dutch gambling market, highlighting the ongoing challenges and opportunities as regulators strive to balance player protection with the sustainability of licensed operators in a competitive environment.
