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The Rise of Illegal Online Gambling in the Netherlands

10/15/2025, 9:00:32 PM

Overview of the Current Situation

In the first half of 2025, the Netherlands experienced a significant shift in its online gambling landscape, with gamblers spending more on illegal websites than on licensed platforms for the first time since legalization in 2021. The Dutch gambling authority, Kansspelautoriteit (KSA), reported that the illegal gambling market reached €617 million, while the legal market generated €600 million. This trend raises concerns about player protection and the effectiveness of regulatory measures.

Regulatory Measures and Their Impact

In response to rising gambling addiction and debts, the Dutch government implemented stricter regulations, including raising the minimum age for high-risk gambling from 18 to 21 and introducing deposit limits for players. While these measures resulted in a decrease in average losses per player—from €146 to €119—the KSA noted that they may have inadvertently pushed some players towards illegal options, where such restrictions do not apply. The KSA expressed concern over this development, emphasizing that players in the illegal market are significantly less protected.

Player Demographics and Behavior

The KSA's report indicated an increase in active gambling accounts, rising from 1.18 million to 1.29 million in the first half of 2025. Notably, young adults aged 18 to 24 accounted for 23% of these accounts, despite representing only 9.3% of the adult population. This demographic is particularly engaged in sports betting, highlighting a potential area of concern for regulators.

Industry Reactions and Future Implications

The rise of illegal gambling has prompted calls for more robust regulatory frameworks. The KSA noted that while 94% of players gamble exclusively with legal operators, the revenue share for illegal sites increased from 49% to 53%. This shift suggests that a small group of players is responsible for a significant portion of illegal gambling revenue, complicating efforts to curb these activities.

Conflicting Reports & Gaps

While the KSA maintains that the majority of players prefer legal options, the financial data indicates a troubling trend towards illegal gambling. The agency's findings suggest that the protective measures intended to safeguard players may be driving them into unregulated environments, where they face greater risks.

Conclusion

The current landscape of online gambling in the Netherlands reflects a complex interplay between regulation and player behavior. As authorities continue to refine their approach to online gambling, the challenge remains to balance player protection with the realities of an evolving market. The KSA's ongoing monitoring and adjustments to regulations will be crucial in addressing the rising tide of illegal gambling and ensuring a safer environment for all players.