KSA: 50% of gambling money goes to illegal operators

Despite notable advancements in the Netherlands’ regulated gambling landscape, the country’s gambling authority, Kansspelautoriteit (KSA), has raised concerns about the enduring dominance of unlicensed operators when it comes to consumer spending. While the proportion of players engaging with legal platforms has reached over 90%, the regulator’s latest market analysis reveals that half of all gambling expenditure continues to be funneled into the illegal sector.

This discrepancy between player participation and actual monetary flow illustrates an ongoing challenge for Dutch authorities: while regulatory reforms have succeeded in steering users toward licensed operators, a considerable portion of spending remains tied to entities that operate outside the official framework.

The continued presence of unlicensed platforms in the market not only poses regulatory enforcement issues but also represents potential risks for players, including lack of consumer protection, data privacy concerns, and vulnerability to unfair gaming practices.

Channelisation progress hampered by spending patterns

Channelisation—the term used to describe the redirection of gamblers from the black market to regulated alternatives—remains a fundamental priority for the KSA. While recent figures suggest that regulatory reforms are achieving meaningful results in terms of user migration, there is a pronounced disparity in how much money players are spending on legal versus illegal platforms.

This imbalance reveals a two-tiered market structure: one in which casual or moderate players predominantly use regulated services, and another in which high-stakes or frequent gamblers continue to be drawn toward illegal operators. These players often seek out less restricted gambling environments, including higher betting limits, access to promotional bonuses, and anonymity—features frequently found on unregulated platforms.

KSA’s analysis implies that tackling these deep-rooted patterns of behavior will require more than licensing initiatives. Instead, it calls for a broader combination of enforcement, player education, and possibly tighter collaboration with financial institutions and international regulatory bodies.

Regulation updates reflect shifting priorities

The Netherlands’ regulatory framework has evolved significantly since the liberalization of the online gambling market in 2021. Among the most impactful recent developments is the implementation of deposit limits, introduced in October 2024. These restrictions were enacted to encourage responsible gambling behavior and reduce the risk of financial harm among users.

By capping the amount that players can deposit into their accounts within a defined timeframe, the government aimed to mitigate excessive losses and reduce the potential for gambling addiction. The KSA’s most recent report confirms that these efforts are bearing fruit, especially among high-risk accounts.

The data suggests that the introduction of deposit caps has directly contributed to a reduction in the number of players experiencing extreme monthly losses. Moreover, it appears to have shifted the structure of revenue generation across the industry. Licensed operators, previously reliant on high-spending users, are now observing a more balanced income distribution.

These changes represent a tangible shift in how the gambling sector operates and are viewed by policymakers as an important step in the ongoing effort to prioritize player safety without stifling industry growth.

Decline in high-risk losses may signal improved player behavior

The regulator's findings provide a detailed look at how spending habits have shifted in the months following the introduction of deposit limits. Most notably, the percentage of accounts incurring losses of more than €1,000 per month has dropped sharply. This metric is particularly significant, as high-loss accounts tend to be closely associated with problematic gambling behavior.

The steep reduction in income generated from such accounts suggests that the deposit cap has successfully limited harmful patterns of play. This change not only benefits individuals who may have previously been vulnerable to excessive losses, but it also challenges operators to adapt their business models in a way that emphasizes long-term engagement over short-term high-risk spending.

By altering the mechanics of how gambling platforms earn revenue, these regulatory reforms aim to make the market more sustainable. The shift also supports the broader public policy objective of ensuring that gambling remains a form of entertainment rather than a source of financial distress.

Market size and seasonal fluctuations in revenue

Despite regulatory tightening, the Dutch gambling sector continues to demonstrate growth. In 2024, the industry generated total online gross gaming revenue (GGR) of €1.47 billion—an increase of 6% over the previous year. This growth occurred even as stricter rules around player behavior were introduced.

However, the year was not without fluctuations. The KSA reported a 10% decline in GGR during the latter half of 2024 compared to the first six months. One possible explanation for this dip is seasonal betting behavior. The first half of the year coincided with a spike in gambling activity linked to international sporting events, such as the early stages of the UEFA European Football Championship. These events often lead to temporary increases in both player engagement and spending, particularly in sports betting.

Such seasonal variation is a recurring feature of gambling markets globally, and the KSA has interpreted the decline in the second half of the year as a normalization following a period of inflated activity. However, it also reflects the possible impact of policy interventions, particularly those aimed at curbing excessive betting.

Youth participation in gambling: Disproportionate engagement, lower spending

One area that continues to draw the KSA’s attention is the gambling behavior of younger adults. Individuals between the ages of 18 and 24 constitute 11% of the market’s total GGR, even though they make up only 9% of the national population. This overrepresentation highlights a demographic with a heightened interest in gambling, though not necessarily with higher levels of financial commitment.

Indeed, the data reveals that while this age group participates frequently, their monthly losses are lower than older cohorts. On average, younger players lose around €48 per month, which is significantly below the average monthly loss for those aged 24 and over.

A defining characteristic of this demographic’s gambling behavior is its strong preference for sports betting. Nearly a third of their gambling spend is allocated to wagering on sports events—a higher proportion than older users. This trend reflects broader generational preferences, shaped by digital accessibility and a cultural alignment with sports as a form of interactive entertainment.

The KSA is likely to continue monitoring this group closely, especially in terms of their exposure to marketing and their long-term engagement with gambling platforms.

Stable user base with growing number of accounts

Another indicator of the market’s evolution is the rising number of active gambling accounts. During the last six months of 2024, the KSA registered an average of 1.19 million active accounts per month. This figure represents a modest increase from the 1.1 million accounts recorded during the first half of the year.

It’s important to note, however, that the number of accounts does not equate to the number of individual players. Many users hold multiple accounts across different platforms, which allows them to take advantage of various offers, games, or sports betting markets. As a result, the estimated number of unique players is significantly lower—approximately 788,000 individuals during the period under review.

This number accounts for roughly 5.4% of the adult population in the Netherlands, a figure that has remained relatively consistent over time. Such stability suggests that the Dutch gambling market is reaching a state of maturity in terms of user base, even as regulators continue to refine the rules and operators adjust their strategies.

Enforcing legal boundaries: The road ahead for the KSA

The KSA’s ongoing struggle to curb illegal gambling underscores the broader challenges facing national regulators in an increasingly interconnected digital economy. Many unlicensed operators are based abroad and use sophisticated methods to target Dutch players, making enforcement a complex task.

The regulator’s tools include blocking access to illegal websites, working with payment processors to restrict financial transactions, and imposing fines on operators that flout the law. However, these measures often prove insufficient without cross-border cooperation.

As such, the KSA is expected to continue advocating for deeper collaboration with European counterparts and international regulatory bodies. Strengthening these alliances could lead to the establishment of shared blacklists, unified enforcement strategies, and enhanced data-sharing protocols.

At the same time, domestic policy measures—such as further limiting advertising for gambling and educating consumers about the risks of unregulated play—will play a critical role in weakening the appeal of illegal operators.

Public education and the path to a safer gambling environment

While enforcement remains essential, many experts argue that the most sustainable path toward a safer gambling market involves empowering consumers with knowledge. Public awareness campaigns, transparency from operators, and educational initiatives can help players make informed decisions and understand the risks associated with gambling outside the licensed environment.

The KSA has previously launched media efforts aimed at highlighting the dangers of unregulated gambling, and such campaigns are likely to be expanded in scope. Special attention may be paid to younger users and sports bettors, who are statistically more likely to be influenced by promotions or peer recommendations.

Final thoughts: A market in evolution, with challenges ahead

The Netherlands’ gambling sector is undergoing a period of transformation marked by regulatory tightening, increased player protections, and the persistent influence of illegal platforms. While notable progress has been made—especially in reducing excessive losses and guiding players toward licensed operators—significant challenges remain.

The coexistence of a thriving legal market and an equally substantial illegal sector suggests that more comprehensive action is required. From financial controls and international cooperation to player education and technological safeguards, a multifaceted strategy will be essential to achieve the KSA’s long-term vision of a safer, more transparent, and fully regulated gambling market.

FAQs

What is the Kansspelautoriteit (KSA)?
The Kansspelautoriteit is the Netherlands' gambling regulator responsible for overseeing legal gambling activities and enforcing rules against illegal operators.

How many players use legal gambling operators in the Netherlands?
According to the KSA, 91% of Dutch players now gamble with licensed operators.

What percentage of gambling spend still goes to illegal platforms?
Despite most players using legal sites, 50% of all gambling expenditure still goes to illegal operators.

What impact have deposit limits had on gambling behavior?
Deposit limits introduced in October 2024 significantly reduced high-loss gambling, with fewer players losing over €1,000 per month.

Has total gambling revenue in the Netherlands increased?
Yes, total gross gaming revenue rose to €1.47 billion in 2024, a 6% increase compared to 2023.

How much do young adults spend on gambling each month?
Young adults aged 18 to 24 spend about €48 per month on gambling, much less than older players.

Do young people favor specific types of gambling?
Yes, young adults tend to prefer sports betting, allocating 29% of their gambling spend to it.

How many active gambling accounts exist in the Netherlands?
There were an average of 1.19 million active gambling accounts per month in the second half of 2024.

How many unique individuals gamble legally in the Netherlands?
The KSA estimates that around 788,000 individuals, or 5.4% of the adult population, gambled with legal operators in late 2024.

What are the KSA’s future plans to combat illegal gambling?
The KSA plans to increase enforcement, potentially using international cooperation and public awareness campaigns to reduce illegal gambling.