Dutch gambling report shows legal decline and black market growth

The latest market monitoring report issued by the Dutch Gaming Authority provides a detailed assessment of the Netherlands’ regulated gambling sector for the second half of 2025. The findings present a nuanced but concerning picture. While the number of licensed operators has remained broadly stable, the regulated market is showing signs of stagnation in both participation and revenue growth. At the same time, indicators suggest that unlicensed operators are gaining traction among Dutch consumers.

The report highlights structural challenges within the legal framework, including regulatory changes introduced in 2024 that appear to have influenced player behavior. Although the legal market continues to serve the majority of users, shifts in both consumer patterns and financial flows suggest that the balance between regulated and unregulated activity may be evolving.

Stable operators but shifting player dynamics

During the reporting period from July to December 2025, the number of licensed operators in the Netherlands increased slightly from 30 to 31. On the surface, this indicates a stable and functioning licensing environment. However, underlying player data reveals a more complex trend.

Approximately 810,000 individuals engaged with licensed gambling providers in the second half of 2025. This represents a decline from around 850,000 users recorded in the first half of the year. While the decrease is not dramatic, it continues a pattern of gradual contraction in the active player base.

Interestingly, the number of active accounts rose by roughly 100,000 during the same period. This divergence suggests that existing users are spreading their activity across multiple platforms rather than new users entering the market. Such behavior may reflect increased comparison shopping among consumers or a response to regulatory measures that limit deposits or impose stricter controls on individual accounts.

The introduction of deposit caps in October 2024 appears to be a key factor influencing this shift. By restricting how much users can deposit within a given timeframe, these measures may encourage players to register with multiple operators to maintain their preferred level of activity. While such outcomes are not necessarily unintended, they raise questions about how effectively the current framework achieves its consumer protection objectives.

Revenue growth masks underlying decline

Gross gaming revenue for the second half of 2025 reached approximately €602 million. This represents a marginal increase of less than one percent compared to the first half of the year. However, when adjusted for inflation, the figure effectively reflects a decline in real terms.

The stagnation in revenue aligns with the observed reduction in active users. It also contrasts with broader trends across the European Union, where the regulated online gambling sector has experienced stronger growth. Industry data suggests that the EU online market expanded by approximately 11 percent between 2024 and 2025.

This divergence indicates that domestic factors are likely contributing to the Netherlands’ slower performance. Regulatory changes introduced in late 2024, including deposit limits and enhanced player protection measures, have been identified as potential contributors. While such measures are designed to promote responsible gambling, they may also impact overall market activity.

Long-term data further underscores this trend. The Dutch market recorded gross gaming revenue of €697 million in the second quarter of 2024, marking a high point in recent years. Since then, cumulative figures for 2024 and 2025 suggest a decline of approximately 18 percent in total GGR. This sustained reduction points to structural changes rather than short-term fluctuations.

Channelization trends raise regulatory concerns

One of the central objectives of gambling regulation is to channel players toward licensed and supervised platforms. This concept, commonly referred to as channelization, serves both consumer protection and fiscal policy goals.

The report indicates that channelization remains relatively high in terms of user participation. Approximately 91 percent of players are estimated to use only legal platforms. However, this represents a decline from the 94 percent recorded earlier in 2025.

More concerning is the data relating to financial channelization. Only about half of total gambling expenditure is now estimated to occur within the legal market. Previous estimates suggested a higher proportion, but updated calculations have revised this figure downward to 49 percent.

This gap between player channelization and financial channelization suggests that users who engage with unlicensed operators may be spending disproportionately higher amounts. According to the regulator, this discrepancy could be linked to differences in player protection standards.

The report notes that individuals using unlicensed platforms may face fewer safeguards, which can result in higher losses. As stated by the authority, “Because they are less protected there or even not protected at all”. This observation highlights the potential risks associated with the expansion of the black market.

Growth of the unlicensed segment

Data on player behavior indicates a measurable increase in engagement with unlicensed operators. In the first half of 2025, approximately 15,000 individuals were estimated to use both legal and illegal platforms. An additional 19,000 users were believed to rely exclusively on unlicensed services.

By the second half of the year, these figures had risen significantly. Estimates suggest that between 20,000 and 30,000 individuals were interacting with the illegal market, either exclusively or in combination with licensed providers.

While these numbers represent a minority of total users, their growth trajectory is notable. It suggests that a segment of the market may be seeking alternatives to the regulated environment, potentially in response to restrictions or perceived limitations within the legal system.

From a regulatory perspective, this trend underscores the importance of maintaining a competitive and attractive legal market. If licensed operators are unable to meet consumer expectations within the constraints of the regulatory framework, there is a risk that users will migrate to less regulated environments.

Regulatory balance and future outlook

The findings of the report highlight the complex balance that regulators must achieve between consumer protection and market viability. Measures such as deposit caps are intended to reduce harm and promote responsible behavior. However, their broader impact on market dynamics must also be carefully considered.

The Dutch experience illustrates how well-intentioned policies can produce secondary effects, including changes in player behavior and shifts toward unregulated platforms. This does not necessarily imply that the measures are ineffective, but rather that their implementation may require ongoing adjustment.

The Dutch Gaming Authority has indicated that monitoring will continue, with future reports expected to provide further insight into evolving trends. Policymakers may also consider additional tools to strengthen channelization, such as enhanced enforcement against illegal operators or adjustments to existing regulations.

At the same time, collaboration with industry stakeholders will remain essential. Licensed operators play a critical role in delivering a safe and compliant environment for consumers. Ensuring that they can operate competitively within the legal framework is likely to be a key priority moving forward.

Conclusion

The Dutch gambling market is currently at a transitional stage. While the regulated sector remains the dominant channel for player participation, underlying indicators point to stagnation in growth and a gradual shift in financial activity toward unlicensed operators.

Stable operator numbers provide a degree of continuity, yet declining player figures and flat revenue growth suggest that the market is facing structural challenges. The rise in multi-account usage reflects changing consumer behavior, potentially influenced by regulatory constraints introduced in recent years.

Most notably, the widening gap between player channelization and financial channelization raises important questions about the effectiveness of current policies. The increasing presence of the black market, though still limited in scale, represents a growing area of concern for regulators.

Going forward, achieving a sustainable balance between protection and accessibility will be critical. Regulatory frameworks must continue to safeguard consumers while ensuring that the legal market remains attractive and competitive. The evolution of the Dutch market will likely serve as an important case study for other jurisdictions navigating similar challenges in the global gambling landscape.

FAQs

What does the Dutch Gaming Authority report cover?
It analyzes the performance of the regulated gambling market in the Netherlands during the second half of 2025 including player activity revenue and illegal market trends.

Why are fewer players using legal gambling platforms?
The decline may be linked to regulatory changes such as deposit limits which can influence how and where players choose to gamble.

What is channelization in gambling?
Channelization refers to the proportion of players and money directed toward licensed and regulated gambling platforms.

Is the illegal gambling market growing in the Netherlands?
Data suggests that engagement with unlicensed operators has increased although it still represents a minority of overall users.

How has revenue changed in the Dutch gambling market?
Revenue has remained largely flat with slight nominal growth but a decline when adjusted for inflation.

Why are players using multiple accounts?
Some players may open accounts with multiple operators to manage deposit limits or compare services across platforms.

What risks are associated with illegal gambling platforms?
Unlicensed platforms may offer fewer protections which can lead to higher financial losses and reduced consumer safeguards.

How does the Netherlands compare to the wider EU market?
The EU online gambling sector has grown faster indicating that domestic factors may be affecting the Dutch market.

What role do regulations play in market trends?
Regulations aim to protect players but can also influence behavior and overall market performance.

What is the outlook for the Dutch gambling market?
The market is expected to remain stable but may require regulatory adjustments to address emerging challenges.