Dutch regulator buoyant on deposit limit impacts, but trade bodies warn of a dangerous future

by iGamingExpert
3 minutes read
Kansspelautoriteit (KSA), the Dutch gambling regulator, has revealed the positive effects of its recently introduced player protection measures, but trade bodies have warned that the country’s black market is growing.

In the second half of 2024, the KSA mandated that players must contact an operator if they want to increase their deposit limits to more than €350 per month or €150 for young adults (18-24).

In addition, providers must now check whether a player can afford deposits of over €300 (young adults) or €700 (aged 24 and over).

The KSA claimed that just 1% of players lost more than €1,000 during the reporting period, falling from 4% before the rule changes.

The percentage of players depositing more than the deposit limits has dropped from 9.7% to 2.2% for adults, and from 12% to 1.9% for young adults. Also, the average player loss per account decreased by 31% to an average of €80 per month, falling from an average of €116 in the eight months before the rule changes.

The KSA argued that this shows the rules had reduced instances of excessive gambling at legal providers.

During this time, gross gaming result (total deposits minus prizes paid) fell by 8% compared to the previous year.

Channelisation and illegal market

The data also suggested that 93% of players only play with legal providers. However, the channelisation rate in the Netherlands, the percentage of gambling spend at legal operators, is widely reported to be just 50%.

This indicates that a large proportion of high-spending players in the Netherlands are customers of illegal operators, meaning the regulated market is losing out on significant revenue from these players.

Search volume for the top 100 illegal websites also increased following the rules changes, which the KSA conceded could indicate growth in the illegal market.

Fears over the lure of the black market have also been echoed by VNLOK, a trade body for the Dutch gambling industry.

VNLOK, which has recently announced a merger with the NOGA, warned that the black market remains too easily accessible, especially by vulnerable players who are not afforded the same protections as they would if they were playing on the regulated market.

Björn Fuchs, Chair of VNLOK, said: “We must not close our eyes to the other half: the illegal market. It is precisely the players who bet the most money and vulnerable groups, such as minors and young adults, that seem to continue to find their way to the illegal offer. That is exactly the group that is most at risk.”

In response to the results, VNLOK urged the KSA to consider the impact of new regulations, warning that an excess of new rules can have the undesirable effect of driving players to the black market.

It stated: “VNLOK calls for strict action against illegal providers and for a balanced approach to regulation: effective where necessary, but without unnecessarily hindering the player and the legal offer. All findings from the latest impact measurement must be taken into account in the development of new rules.”

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