Netherlands gambling regulator warns black market approaching half of betting expenditure

(AsiaGameHub) –   The Netherlands’ gambling regulator, the Kansspelautoriteit (KSA), has stated that the country’s illegal gambling sector is expanding further.

In its most recent review, KSA Chairman Michel Groothuizen noted that primary metrics for the legal market—such as licensee count, player figures, and total revenue—have stayed mostly flat over the past six months.

This stagnation demonstrates the effect of rules enacted in 2024 and 2025, which encompassed deposit restrictions, advertising rules, and increased tax rates on gambling.

Even with the market’s lack of growth, the KSA indicated that average player losses have kept dropping, declining to approximately €120 (£104) per month in the latter half of 2025—a reduction of over 25% from the year before.

Nevertheless, the KSA expressed renewed alarm over the scale of the illicit market. The proportion of gross gaming revenue (GGR) attributed to licensed operators decreased from 56% early in 2025 to 53% in the second half, implying close to half of all gambling expenditure now goes to unlicensed sites.

“Research indicates the illegal market’s global share is increasing, a pattern we observe in other European nations too,” Groothuizen stated.

“Several technological advances, like AI, and trends such as cryptocurrency gambling are factors. In the Netherlands, this movement might also stem from our own actions to enhance player safety at legal operators, like the implemented deposit limits.

“Whereas half a year ago we had not seen deposit limits per operator leading to multiple accounts, we now notice a slight rise in accounts per player.

“Consequently, it is plausible that the financial capacity check triggered above a specific amount motivates individuals to open another legal account elsewhere to avoid it, or to move completely to illegal options.”

As Groothuizen highlighted, illicit market growth is not confined to the Netherlands. Regulators worldwide appear to be struggling to manage the surge of unlicensed operators within their borders.

For instance, a recent YieldSec report revealed 62% of gambling activity in South Africa occurred via unlicensed sites not regulated domestically. South African Bookmakers’ Association (SABA) CEO Sean Coleman informed SBC News that the country’s regulators are “lacking resources and skill sets to deal with the illegal market”.

This sentiment is likely common among experts in many countries, supported by a study for Flutter Entertainment detailing how UK black market operators function effectively without significant consequences.

Regarding this, researcher Alex Wood remarked it would be “impossible” to legally confront these operators because of cross-border challenges.

The KSA’s future plans

For the future, Dutch authorities are evaluating a comprehensive deposit limit to stop players from hopping between licensed operators. Although this could limit avoidance within the legal market, Groothuizen recognized it might also drive some players to illegal alternatives.

The KSA also reaffirmed its dedication to rigorous duty-of-care standards, underscoring persistent worries about high-risk gambling. Approximately 6% of Dutch adults engage in online gambling, and it has been highlighted that the country has “no age group that has as many gambling accounts, relatively speaking, as 18-year-olds”.

Groothuizen cautioned that relaxing player safeguards would be unsuitable, emphasizing that protecting at-risk users is a foremost concern.

Only last week, the KSA allocated additional money to its Addiction Prevention Fund to combat problem gambling. Although the regulator is often highlighted globally for addressing gambling harm and illegal operations, it continues to face extensive challenges—issues that extend beyond the Netherlands.

Groothuizen ended his remarks by stating: “Strict compliance with the duty of care thus remains a key priority for the legal market.

“It is self-evident that the illegal sector has no concern whatsoever for the potential harm from gambling.”