KSA reports 16% drop in Dutch online gambling revenue

The Dutch gambling regulator, Kansspelautoriteit (KSA), has reported a significant downturn in the performance of the regulated online gambling sector in the Netherlands during the first half of the year. According to the regulator’s latest Autumn Market Report, gross gaming revenue (GGR) fell by 16 per cent year-on-year, reaching approximately €600 million.

This decline has raised broader questions about the stability of the country’s online gaming market, particularly in the context of increased taxation, stricter player deposit limits, and a gradual shift in player behavior towards unlicensed gambling operators.

Overview of the market performance

In the six months leading up to June, the number of registered online gambling accounts in the Netherlands increased modestly, from 1.18 million in late 2024 to 1.29 million. Despite this growth in account numbers, the average spending per player fell sharply.

The KSA attributed this decline primarily to the deposit restrictions introduced during the second half of 2024. These rules were designed to promote safer gambling habits by limiting the amount of money that players could deposit over a given period.

As a result, average monthly player losses dropped from €146 at the end of 2024 to €119 by mid-2025. While this trend supports responsible gambling objectives, it has also contributed to a measurable contraction in the total market turnover.

The rise of unlicensed gambling platforms

The KSA expressed concern that a segment of Dutch players may be migrating toward unregulated or unlicensed online platforms. These offshore sites, which fall outside the authority’s oversight, can often offer higher betting limits, promotional incentives, and reduced identification requirements—features that regulated operators are prohibited from providing under Dutch law.

The regulator’s data showed a decline in channelisation, which refers to the proportion of gambling activity taking place on licensed platforms. The proportion of licensed GGR fell from 51 per cent in December to 49 per cent by January, suggesting that fewer players are choosing regulated operators.

The KSA has repeatedly emphasized the importance of maintaining a high level of channelisation to protect players from potential harm associated with illegal gambling. Such platforms often lack player protection measures, dispute resolution mechanisms, or responsible gaming tools.

Revenue trends reflect a broader slowdown

The downward trend observed in early 2025 appears to continue a pattern that began in the latter half of 2024. For that year as a whole, the Dutch online gambling market generated €1.47 billion in GGR, representing a 6 per cent year-on-year increase. However, this growth masked a clear deceleration: revenue in the second half of 2024 was 10 per cent lower than in the first half.

By contrast, in 2023, Dutch online gambling revenues had surged by 28 per cent year-on-year to reach €1.39 billion. This earlier period of expansion coincided with the relatively recent legalisation and regulation of online gambling in the Netherlands, which opened the market to licensed operators in October 2021.

Analysts suggest that the initial boom following market liberalisation has now plateaued, as the novelty has worn off and the market has begun to stabilise.

The tax factor and its consequences

One of the most significant pressures on gambling operators in the Netherlands has been the rising tax burden. The gambling tax rate increased from 30.5 per cent to 34.2 per cent as of January 1, 2025, and is expected to rise further to 37.8 per cent by 2026.

The KSA noted that this tax hike has already led to a decline in the overall tax take, suggesting that higher rates may be suppressing revenue rather than increasing government income.

While the stated purpose of the higher tax rate is to ensure that gambling contributes adequately to public funds, the policy may also have unintended consequences—namely, discouraging compliance and incentivising offshore participation.

According to the regulator, the land-based gambling sector has been particularly affected. The number of physical gaming venues across the Netherlands decreased by 9 per cent year-on-year in the first quarter of 2025, accelerating the average annual decline of 6 per cent recorded between 2020 and 2025.

This contraction has been linked to mounting operational costs, decreased visitor numbers, and an increasingly stringent regulatory framework.

A shift toward responsible gambling

Despite the decline in revenue, the KSA has underscored the positive implications of reduced player losses. The regulator continues to prioritize responsible gambling and the prevention of problem gambling over short-term market expansion.

The authority views the reduction in average player spending as evidence that deposit limits and affordability checks are achieving their intended effect. “Player protection remains the cornerstone of our regulatory mission,” a KSA spokesperson stated in the report.

In the Netherlands, gambling operators are legally required to monitor player behavior, apply intervention mechanisms when risky patterns are identified, and ensure that players do not exceed deposit limits.

The balance between regulation and market health

Industry observers have highlighted the delicate balance between ensuring consumer protection and maintaining a viable regulated market. Excessively strict restrictions, they argue, can push players toward unlicensed operators, thereby undermining the very objectives of consumer protection policies.

The KSA has acknowledged this dilemma and stated that it continues to evaluate the impact of new measures. It has also signaled that it may consider additional enforcement action against illegal operators, alongside efforts to make the regulated market more competitive and appealing.

Some experts advocate for public awareness campaigns that educate consumers about the risks of unlicensed gambling and the benefits of using regulated operators. Others call for better coordination between fiscal and regulatory policy to prevent the unintended economic consequences of high taxation.

The regulatory outlook for 2025 and beyond

Looking forward, the Dutch gambling sector faces a period of readjustment and consolidation. While overall revenues may continue to decline in the short term, the regulator and industry participants are expected to focus increasingly on sustainability and compliance.

The forthcoming tax increase in 2026 will likely intensify pressure on operators, particularly smaller companies with limited financial reserves. Larger operators with diversified portfolios may be better positioned to adapt to the evolving landscape.

Meanwhile, the KSA has indicated that it intends to strengthen its monitoring of unlicensed gambling websites and expand cooperation with international enforcement agencies. The regulator’s objective is to make illegal online gambling less accessible to Dutch consumers through technical blocking measures, payment restrictions, and targeted public communication.

Implications for the Dutch gambling industry

The data published in the Autumn Market Report reinforces the view that the Dutch gambling industry is entering a more mature, regulated phase. The early surge in activity that followed market liberalisation has been tempered by fiscal tightening, compliance costs, and evolving consumer behavior.

The coming years are expected to be defined by consolidation, regulatory refinement, and a growing focus on social responsibility.

For operators, success will depend on their ability to adapt to new fiscal realities while maintaining compliance and player trust. For regulators, the challenge will lie in safeguarding the public interest without driving players toward the shadow economy of unlicensed platforms.

Conclusion

The decline in Dutch online gambling revenue reflects a broader recalibration within the industry. While increased regulation and taxation have reduced market turnover, they also signal a maturing system prioritizing player safety, transparency, and responsible gambling.

However, the ongoing risk of channelisation decline poses a serious concern. Ensuring that the majority of gambling activity remains within the regulated framework will be vital to maintaining the integrity of the Dutch gambling market.

As the sector navigates this new phase, both the KSA and licensed operators will need to work together to achieve the right balance between sustainability and social responsibility—an equilibrium that may ultimately determine the future success of the Netherlands’ regulated gambling environment.

FAQs

What is the Kansspelautoriteit (KSA)?
The Kansspelautoriteit is the Dutch gambling authority responsible for regulating and supervising both land-based and online gambling in the Netherlands.

Why did online gambling revenue decline in the Netherlands?
Revenue declined due to higher taxes, tighter deposit limits, and a possible shift of players toward unlicensed platforms.

What is the current gambling tax rate in the Netherlands?
As of January 2025, the gambling tax rate increased to 34.2 per cent, with a further rise to 37.8 per cent expected in 2026.

Has player spending decreased?
Yes, average monthly player losses dropped from €146 to €119, reflecting the impact of new deposit restrictions and safer gambling policies.

Are more players turning to unlicensed websites?
There are indications that some players have moved to unlicensed platforms, as the share of licensed GGR fell from 51 to 49 per cent.

How is the land-based gambling sector performing?
The sector experienced a 9 per cent decline in gaming venues during the first quarter of 2025, continuing a long-term downward trend.

Why is channelisation important in gambling regulation?
High channelisation ensures that most gambling occurs within regulated environments, protecting players from unsafe and illegal sites.

Will the new tax increase affect players?
While the tax increase directly impacts operators, it may indirectly affect players through reduced bonuses or promotional offers.

What steps is the KSA taking against illegal gambling?
The KSA is enhancing enforcement actions, blocking payments to unlicensed sites, and increasing public awareness of safe gambling options.

What is the outlook for the Dutch gambling market?
The market is expected to stabilise with a stronger emphasis on compliance, responsible gambling, and long-term sustainability.