New Insights into the Dutch Gambling Market: Challenges and Trends Post-Regulation
The Kansspelautoriteit (KSA), the regulatory body overseeing gambling in the Netherlands, has issued a report revealing intriguing developments in the country’s regulated gambling landscape. Despite a notable increase in the number of registered accounts, the gross gaming revenue (GGR) for legal gambling has witnessed a downturn following the implementation of new deposit limits.
In its latest spring report, KSA disclosed that the GGR for the entire year of 2024 reached €1.47 billion (approximately $1.58 billion or £1.2 billion), reflecting a moderate growth of 6% compared to the previous year. However, a closer examination reveals that the latter half of 2024 experienced a striking 10% decline in GGR, dropping to €697 million. These figures span from January 1 to December 31, 2024.
The recent protective measures introduced in October 2024 appear to have had a profound impact on market behavior. As stated by the KSA, “This decrease is likely a result of both the peak in activity during the European Football Championship in June 2024 and the new rules focused on safeguarding players within the online gambling sector.”
A key component of these new regulations involves setting deposit caps based on an individual’s net deposits for a given month. If a player’s net deposits exceed €700 (€300 for those aged 18 to 25), operators are mandated to halt further deposits. Players can appeal for an increase in their deposit limits, provided they can demonstrate evidence of a sustainable higher income.
Interestingly, while the KSA noted an uptick in accounts—from 1.1 million to 1.19 million—over a six-month period, it estimated that only 788,000 players were actively engaged with licensed platforms, representing about 5.4% of the nation’s adult population.
Shifts in Online Channelisation
Initially, the KSA gauged that around 91% of online gamblers were utilizing legal operators. However, upon adopting a new evaluation technique aligned with the Dutch lottery system, it was found that this channelisation was considerably lower than anticipated. The preliminary GGR channelisation rate for 2024 was placed at 87%; however, with the new methodology, it dipped to about 58% in the first half of the year and further declined to 50% in the latter half, coinciding with the introduction of the deposit limits.
This decline signals a troubling trend: while responsible gambling measures have successfully curtailed excessive betting among legal providers, there is concern that high-rolling players are migrating to unregulated markets. KSA reports that nearly 50% of the total funds lost in the Dutch gambling arena now end up in the hands of illicit operators.
The KSA opined that while conditions for problematic gambling at legal sites have improved, there’s a clear indication of a shift where higher stakes are being funneled into underground networks. “The initiation of these regulatory measures has curtailed extreme gambling behaviors among legal participants,” noted the authority in a detailed report from February. A decrease in players incurring losses over €1,000 was reported, accompanied by a rise in the proportion of accounts with lower losses.
Dominance of Online Casino Games
According to the KSA, online gambling, particularly the “casino games against the house” segment, accounted for an impressive 75% of total GGR during the latter half of 2024. Sports betting, often subject to fluctuations based on major events, experienced the least decline following the enforcement of the new deposit limits.
The KSA highlighted that prior to these player protection regulations, betting accounts that engaged in both sports wagering and casino games reported the highest average losses. However, post-regulation data indicates no significant difference in loss levels between accounts focused solely on casino games and those also participating in sports betting, a shift that might reflect a broader trend toward responsible gambling practices.
The KSA’s findings illustrate the complexities of the Dutch gambling market as it navigates between player protection and the potential allure of unregulated options. As the landscape continues to evolve, ongoing analyses will be essential to ensure the balance between consumer safety and market viability remains intact.