KSA broadens oversight to curb illegal gambling in Netherlands

KSA broadens oversight to curb illegal gambling in Netherlands

The Dutch gambling regulator, Kansspelautoriteit (KSA), has announced a major expansion of its enforcement agenda for 2026. The authority is shifting its focus from merely targeting unlicensed gambling operators to a broader oversight of the ecosystem that enables illegal gambling. This new strategy is aimed at disrupting the networks that allow illegal gambling to flourish and holding additional stakeholders accountable.

The regulator’s revised agenda makes clear that payment providers, hosting companies, social media platforms and B2B suppliers are now part of the KSA’s enforcement priorities. This represents a marked change in strategy, reflecting frustration with the persistence of unlicensed operators despite previous measures targeting individual websites.

The need for a broader enforcement strategy

In the past, the KSA concentrated primarily on enforcing licensing requirements and imposing fines on operators who breached regulations. However, illegal gambling continues to attract Dutch players, largely because offshore operators are supported by commercial partners and technological intermediaries.

The KSA noted that “the illegal market is more than just illegal gambling websites” and acknowledged that these supporting service providers allow unlicensed platforms to remain accessible. By widening its enforcement scope, the regulator seeks to make illegal gambling inaccessible rather than relying on reactive fines or penalties alone.

This approach recognises the complexity of modern online gambling markets, where operators use sophisticated advertising channels, affiliate networks and payment systems to maintain reach and attract users. It highlights a regulatory shift from focusing purely on operators to addressing the ecosystem that supports them.

Targeting the wider ecosystem

The expanded oversight includes businesses that provide essential infrastructure and services to gambling operators. Payment processors, web hosting companies, domain registrars and social media platforms that facilitate online presence or advertise unlicensed sites will all be under closer scrutiny.

“The illegal market is more than just illegal gambling websites,” the KSA said, emphasising that offshore operators are supported by networks of commercial partners that allow them to remain accessible to Dutch consumers. This new focus suggests that companies operating in both licensed and unlicensed markets may face increased regulatory attention.

The regulator also plans to strengthen cooperation with foreign authorities, recognising that illegal gambling is a cross-border problem. Coordinated action and shared intelligence are expected to help close gaps that operators exploit to reach players in multiple jurisdictions.

Cross-border cooperation and private sector dialogue

The KSA’s updated strategy highlights collaboration with international regulators and dialogue with private-sector companies as key elements of enforcement. By engaging payment firms, hosting providers and social media platforms, the authority aims to preemptively address vulnerabilities in the supply chain that illegal operators rely upon.

Although the agenda does not outline specific penalties for suppliers, the language indicates that a firmer stance is likely. Companies providing services to both licensed and unlicensed operators could face closer scrutiny and potentially more stringent compliance requirements.

Reflections from other jurisdictions

The KSA’s approach aligns with trends observed in other European markets. Regulators such as the UK Gambling Commission (UKGC) have raised concerns about companies that operate in both regulated and unregulated spaces. Social media platforms and affiliates that profit from advertising unlicensed gambling sites have been particularly criticised.

UKGC executive director Tim Miller highlighted the dilemma of dual-use suppliers, questioning “whose side are you on?” when companies enable unlicensed operators to reach users. He pointed to advertisements bypassing self-exclusion schemes as an example of how legal safeguards can be undermined by ecosystem participants.

Such concerns demonstrate that focusing enforcement solely on operators is insufficient. Effective regulation now requires oversight of affiliates, advertisers, technology providers and digital platforms that facilitate illegal gambling.

Challenges within the Dutch market

The legalisation of online gambling in the Netherlands in 2021 brought significant changes to the market. While many players use licensed operators, the illegal market has grown substantially.

In 2025, unlicensed operators generated more gross gaming revenue than legal operators for the first time since legalisation. This trend highlights the scale of the challenge and the importance of comprehensive enforcement.

The channelisation rate, which measures the proportion of gambling activity occurring within licensed operators versus the total market, dropped to approximately 49 percent in 2025. This indicates that almost half of all gambling spend flowed to unlicensed operators. While the majority of Dutch players gamble within legal frameworks, high-value segments may be increasingly using illegal sites, putting pressure on the regulated market.

Strengthening enforcement and industry cooperation

The KSA’s strategy for 2026 focuses on proactive disruption rather than reactive enforcement. The aim is to make illegal gambling less accessible by severing the infrastructure and commercial support that sustains unlicensed operators.

Engagement with banks, payment processors, internet service providers and marketing platforms will play a crucial role. By leveraging these partners’ influence and technical capabilities, the regulator seeks to close loopholes and diminish the appeal of illegal platforms.

Advertising controls will also be strengthened to prevent promotional content for unlicensed gambling from reaching potential users. This approach recognises that visibility and ease of access are major drivers of user behaviour in online gambling.

Balancing regulation and market confidence

While the expanded enforcement approach prioritises consumer protection, it also aims to maintain confidence in the licensed market. Regulators must balance strict oversight with measures that encourage players to engage with licensed operators. Excessive restrictions or high taxation could inadvertently push players toward illegal alternatives.

Discussions continue on how to maintain responsible gambling safeguards while keeping the legal market competitive. Protecting vulnerable players remains a priority, but regulators also aim to ensure fair market conditions and proportionate rules to support a vibrant regulated sector.

Looking ahead

The KSA’s broadened enforcement agenda signals a new era in gambling regulation. By extending oversight to technology providers, payment systems and other intermediaries, the regulator aims to reduce illegal gambling activity and reinforce the integrity of the licensed market.

Recognising that illegal gambling is supported by a complex web of services and platforms, the KSA’s proactive approach seeks to create accountability across the entire ecosystem. International cooperation and private sector engagement will be central to the strategy, providing a more sustainable path to reduce unlicensed gambling.

As these measures are implemented, the Dutch market and international stakeholders will closely monitor their impact on illegal gambling trends, industry compliance and consumer protection. This ecosystem-focused approach represents a significant shift in regulatory philosophy and demonstrates a commitment to maintaining a safe, fair and accountable gambling environment.

Conclusion

The KSA’s expanded enforcement strategy marks a pivotal moment in the regulation of online gambling in the Netherlands. By moving beyond a narrow focus on unlicensed operators and addressing the wider ecosystem that enables illegal activity, the regulator is acknowledging the complex realities of today’s digital gambling environment. Payment processors, hosting services, affiliates, social media platforms and other intermediaries now face heightened scrutiny, signalling a shift toward accountability across the entire market.

This ecosystem-focused approach offers a dual benefit: it strengthens consumer protection by making illegal gambling less accessible and it reinforces the integrity and credibility of the licensed market. The strategy demonstrates that effective regulation requires not only punitive measures but also proactive engagement with industry partners and international counterparts. By fostering collaboration and closing operational loopholes, the KSA is laying the groundwork for a sustainable, legally compliant gambling sector that prioritises player safety and market fairness.

Looking ahead, the success of this strategy will depend on the regulator’s ability to balance strict enforcement with market confidence, ensuring that legal operators remain competitive while unlicensed actors are progressively marginalized. The Dutch experience may well serve as a model for other jurisdictions grappling with similar challenges, illustrating that safeguarding the gambling landscape requires a holistic, forward-thinking and adaptable regulatory approach. Ultimately, the KSA’s actions signal a new era of accountability and resilience for the Dutch gambling ecosystem, promising a safer, fairer and more transparent future for all stakeholders.

FAQs

What is the Kansspelautoriteit and what does it regulate?
The Kansspelautoriteit is the Dutch gambling regulator responsible for licensing and supervising gambling activities in the Netherlands and ensuring compliance with national gambling laws.

Why is the regulator expanding its enforcement focus?
The regulator is broadening oversight to include suppliers and partners because illegal gambling has persisted despite measures focused solely on unlicensed operators.

Which types of companies are now under increased scrutiny?
Payment processors, hosting companies, social media platforms and other technology providers that indirectly facilitate illegal gambling are under closer review.

How does illegal gambling affect the legal market in the Netherlands?
Illegal gambling has grown to rival and in some metrics surpass the legal market, threatening the channelisation rate and reducing revenue for licensed operators.

What is the channelisation rate?
The channelisation rate is the proportion of gambling activity occurring within licensed operators compared with total gambling activity, including unlicensed operators.

Will the KSA impose new penalties on suppliers?
Although specific penalties are not yet outlined, the regulator’s language suggests a stronger enforcement stance may result in tougher action against non-compliant suppliers.

How will international cooperation help combat illegal gambling?
Working with foreign regulators allows shared intelligence and coordinated actions that can disrupt cross-border illegal gambling more effectively.

Why are social media platforms being scrutinised?
Social media platforms are examined because they may host ads for unlicensed gambling sites that reach large audiences and potentially vulnerable players.

How does this enforcement affect players?
The expanded enforcement aims to make illegal gambling less accessible, improving consumer protection and encouraging use of licensed operators with safeguards.

What are industry concerns about regulatory measures?
Some in the industry worry that overly restrictive rules or high taxes could push players toward illegal sites, complicating efforts to balance safety with market attractiveness.

What does this strategy mean for the future of online gambling regulation?
The strategy signals a shift toward ecosystem-wide accountability, increasing cooperation between regulators and industry partners to protect consumers and strengthen the licensed market.

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