Dutch Regulator Warns of Rising Illegal Online Gambling Despite Player Growth

The Dutch gambling authority, Kansspelautoriteit (KSA), has voiced renewed concern that illegal online gambling activity is increasing in the Netherlands, even as the number of player accounts continues to grow. The warning follows the release of new data covering the first six months of 2025, which revealed a decline in gross gaming revenue (GGR) despite a rising number of users engaging in iGaming.

According to the KSA’s latest report, total online gaming GGR in the Netherlands reached €600 million ($695 million) by the end of June 2025, representing a 16% drop compared to the final six months of 2024. Online casino games remained the most popular choice among consumers, followed by sports betting, peer-to-peer casino games, and horse race betting.

The regulator attributed part of the decline to the implementation of stricter responsible gambling measures earlier this year. These reforms introduced new deposit limit settings that cap how much players can wager with each licensed operator. As a result, spending per player has fallen, although overall participation appears to have expanded.

The data showed that the average number of active online gambling accounts per month rose to 1.29 million in the first half of 2025, up from 1.18 million in the latter half of 2024. Of these, 7.1% were newly created accounts. The KSA said this rise likely reflects players opening multiple accounts across different operators to bypass the new deposit restrictions. Once a player reaches their limit with one provider, they can move to another platform to continue gambling. “Spreading their activity across numerous websites opens up more play options,” the regulator explained.

While the overall participation rate in licensed gambling remains high, KSA expressed growing alarm over the shift toward unregulated sites. The regulator noted that channelisation — the share of gamblers using legal platforms — has remained relatively steady at around 94%. However, the portion of total revenue going to licensed operators fell from 51% in the second half of 2024 to 49% in the first half of 2025. The KSA said this decline may signal that more users are turning to illegal websites, which are not subject to player protection rules or deposit limits.

“KSA considers this a worrying development, as players in the illegal market are much less well protected,” the authority said.

The regulator also drew attention to demographic trends, noting that younger adults continue to make up a disproportionately high share of online gamblers. Individuals aged 18 to 24 accounted for 23% of all accounts active during the first half of 2025, despite representing only 9.3% of the country’s adult population. Although younger players were more active, their financial losses were smaller on average — €37 compared with €78 for older users.

Overall, approximately 839,000 players were active with licensed online gambling providers between January and June 2025. This equates to 5.7% of the adult population participating in legal iGaming, up from 5.4% in the previous half-year period.

Despite the continued dominance of the regulated market, the KSA’s findings underscore an emerging risk: that tighter consumer protection measures may be inadvertently pushing players toward unlicensed operators offering fewer restrictions. The regulator has pledged to maintain close oversight as it seeks to safeguard Dutch players and uphold the integrity of the country’s regulated gambling framework.

By fLEXI tEAM