Netherlands illegal domain traffic grows following deposit limits
A recent analysis of the illegal gambling landscape in the Netherlands reveals a concerning rise in traffic to illicit online gambling sites, particularly following the implementation of deposit limits last year. This data underscores significant trends within the gambling industry that warrant closer examination from regulators and stakeholders alike.
Surge in Illegal Gambling Traffic
In a report published on March 10 by the Quality Mark Responsible Affiliates (KVA), a Dutch advisory body, findings indicate that searches for terms such as “casino without limits” or “casino without Cruks” — the latter referring to the Dutch self-exclusion program — have driven a notable increase in illicit site traffic since the introduction of deposit limits in October 2022.
The figures are striking:
- October 2022: 172,576 visits to illegal domains.
- November 2022: Increase to 294,255 visits.
- February 2023: Surged further to 412,997 visits.
- March 2023 (as of March 5): Traffic surpassed one million visits.
Moreover, the number of illegal gambling domains appearing in top search results for these keywords has climbed from 19 in October to 72 in March, highlighting a burgeoning problem in the realm of online gambling regulation.
KVA’s Role and Recommendations
The KVA, formed by legal firm XY Legal Solutions, aims to ensure that affiliate sites align with Dutch regulatory compliance. Utilizing the Quality Mark Responsible Affiliates (QMRA) framework, the KVA rigorously monitors illegal site traffic trends through analytic tools such as Semrush.
In response to the alarming increase in illegal website usage, the KVA has emphasized the need for a nuanced approach to regulatory measures concerning online gambling. It cautions that imposing further restrictions on legal advertising may unintentionally drive players towards unregulated platforms at an accelerated pace.
KVA Statement: “Further restrictions on legal advertising could have an unintended adverse effect, causing players to switch to illegal platforms even more quickly.”
Regulatory Measures: KSA Deposit Thresholds
The Kansspelautoriteit (KSA), the Dutch gambling authority, instituted various protective measures effective from October 2022. Among these are specific deposit thresholds aimed at curbing gambling behaviors:
- Standard Player Limit: €700 (approximately $777) monthly net deposits; exceeding this threshold results in blocks on further deposits for the remainder of the month.
- Young Adult Limit (Ages 18-25): €300 limit.
Players wishing to increase their deposit limit must provide valid income verification to operators.
A report released by the KSA on February 14 indicates that these measures have yielded some positive outcomes:
- The percentage of players losing over €1,000 monthly has decreased from 4% to 1% since the new rules were enacted.
- While 91% of participants engaged with legal providers, the proportion of total betting losses attributed to illegal sites escalated, revealing that 50% of total market losses are now occurring on unregulated platforms.
The KSA noted, “The introduction of the policy rules has led to a reduction in excessive gambling at legal providers. However, there is a significant risk that high-stakes players have migrated to illegal operators, while casual gamblers largely remain with licensed services.”
Conclusion: Navigating the Future of Gambling Regulation
The trend of increased traffic to illegal online gambling sites following the introduction of deposit limits serves as a critical indicator of the complexities involved in regulating the gambling industry. As stakeholders analyze the implications of current practices, it becomes ever more essential to balance player protection with the viability of licensed operators.
Call to Action for Industry Stakeholders
For regulators, operators, and affiliates, the findings from the KVA and KSA highlight the urgent need for a collaborative dialogue to address the challenges posed by illegal gambling. Effective strategies must be developed to promote responsible gambling while mitigating the allure of unregulated platforms. Only through such collective efforts can the integrity of the regulated gambling market be upheld in the Netherlands and beyond.
