Michel Groothuizen, Chairman of Kansspelautoriteit (KSA), the Netherlands Gambling Authority, responded to the findings of the Autumn Report and Market Scan of the Dutch gambling market for 2024.
The reports revealed that despite concerns from licensed operators, the Dutch gambling market continues to grow. Gross gaming income (GGR) increased from €3.3bn to €4bn in 2023.
As the governing body, KSA closely monitors market changes resulting from new amendments and protections imposed on the Remote Gambling Act (KOA), which has regulated online gambling in the Netherlands since October 2021.
Groothuizen made it clear: “The Netherlands has a regulated gambling market to ensure that anyone who wants to gamble can do so safely, whether it’s at a lottery, the arcade around the corner, or behind the computer.”
The reports highlighted several positive trends. Dutch land-based gambling has rebounded to pre-COVID levels. Additionally, the KOA market has exceeded expectations, with 95% of players using legal providers, surpassing the initial channelisation target.
However, Groothuizen acknowledged that the outlook for Dutch gambling remains split between political pressures and business realities. He remarked, “Anyone who has followed the news about gambling in recent months might get the impression that this regulated market is under pressure.”
He explained that stories about significant losses have led to tighter regulations. Gambling providers claim these stricter rules are driving people to illegal operators. “The new government is raising the gambling tax and wants, as Prime Minister Schoof himself said, to ‘discourage gambling,’” Groothuizen added.
Political backlash and new regulations are creating uncertainty for licensed operators and the KOA market. Groothuizen pointed out that the government must protect the KOA market’s 95% channelisation rate by carefully managing future restrictions, especially an advertising ban. “The total ban on advertising, which has been in the air politically for some time, could significantly harm this,” he warned.
He referenced neighbouring countries, where similar advertising bans led to a sharp decline in legal gambling, with up to half of the players turning to illegal markets. This shift poses serious risks because unregulated platforms don’t protect consumers and don’t contribute to the Dutch economy through taxes or safety measures.
Groothuizen emphasised the danger: “Stricter regulations could unintentionally push more players to illegal operators, who don’t care about protecting players from excessive gambling.”
Raising gambling taxes, although intended to discourage gambling, may have unintended consequences. Groothuizen is concerned that “the stricter we regulate, the more players may turn to illegal markets.” Players who use illegal operators face higher financial risks and lose out on the consumer protections that come with regulated gambling.