Dutch Deposit Limits Slash Player Losses, But Concerns Grow Over Shift to Illegal Gambling Sites

Tighter deposit limits introduced by the Dutch gambling regulator Kansspelautoriteit (KSA) have led to a sharp drop in player losses, but new concerns are emerging over the unintended consequence of increased interest in offshore gambling markets.

Since October 2024, the Netherlands has enforced stricter rules to protect consumers, particularly around monthly net deposit caps. Under the regulation, any player who exceeds a net deposit of €700 ($824) within a calendar month is automatically blocked from further deposits until the next month begins. The threshold is even stricter for young adults aged 18 to 25, who face a monthly limit of €300. These caps reset automatically on the first of each month.

The KSA’s newly published data shows the immediate impact of these changes. Before the rules took effect, 9.7% of Dutch players exceeded the set deposit limits. That figure has since plunged to 2.2%. The drop is even more striking among young adults, where the percentage of those exceeding the limit fell from 12.0% to just 1.9%.

Additional safeguards were also implemented, requiring players to notify gambling operators directly if they wish to deposit more than certain amounts. These age-based thresholds are set at €150 for young adults and €350 for older users. According to the KSA, “less than 50% of players are now depositing more than these levels” since the rules were updated.

These financial restrictions appear to be having a meaningful effect on player spending. The KSA reported that the average monthly gambling loss per player has dropped by 31%, from €116 in the eight months leading up to the rule change to just €80 in the eight months since implementation. This occurred despite the average player still holding about 2.4 gambling accounts—a figure that has remained unchanged.

Moreover, the number of individuals losing over €1,000 each month has decreased significantly. Before the rules were enacted, 4% of players were in this high-loss category. That number has now dropped to 1%.

In tandem, the gross gaming result—defined as total stakes minus payouts—has fallen by 8% in the same period. The KSA interpreted this as clear evidence that “the policy changes have reduced the amount of ‘excessive’ gambling with licensed operators.”

But while the domestic market appears to be stabilizing under the weight of tighter controls, regulators are growing increasingly wary of a shift in consumer behavior. The KSA noted a rise in online searches for illegal gambling websites. Specifically, it highlighted an increase in activity surrounding the “top 100 illegal websites in the Netherlands,” raising red flags. As the regulator warned, “This could indicate a growth of the illegal market.”

Nonetheless, the KSA maintains that legal channelisation remains high. According to its latest figures, “the current rate of channelisation is at 93%,” suggesting that the vast majority of Dutch players continue to gamble with licensed platforms. This is slightly down from a previously reported figure of 95%, although that higher number was questioned by market analysts.

H2 Gambling Capital, for instance, estimates that the Dutch online gambling market is effectively split down the middle, with a total market size of €2.10bn—half of which, they say, is being generated offshore.

The tension around channelisation is not new. Back in April, the Licensed Dutch Online Gambling Providers (VNLOK) voiced their concerns about the illegal market’s growth, following a KSA report that stated the channelisation rate had dipped to just 50% over the second half of 2024.

And now, fresh tax hikes could further test the resilience of the regulated market. As of 1 January 2025, the Dutch gambling tax rose from 30.5% to 34.2% of gross gaming revenue.

Another increase is already scheduled for next January, with the rate climbing to 37.8%.

These rising costs for operators have raised alarms. Industry stakeholders fear that such tax pressure may prompt more licensees to exit the market—and worse, push more players toward unlicensed, illegal sites.

The KSA has committed to releasing a follow-up report examining the impact of the tax increase in the coming weeks. Meanwhile, projections from H2 suggest a turbulent road ahead. Although it anticipates that regulated operators will still generate €1.21bn in revenue by 2030, that would represent just 45% of the total iGaming market—suggesting a steady long-term decline in the dominance of legal platforms.

As the Dutch government and regulators weigh the success of player protection policies against the threat of illegal market migration, the challenge of striking a sustainable balance remains front and center.

By fLEXI tEAM