Dutch illegal gambling market outpaces regulated sector for first time

• Netherlands gambling authority reports channelisation rate fell to 49% in first half of 2025, marking first time illegal market exceeds regulated sector in revenue terms
• Legal market gross gaming revenue dropped 16% to €600 million despite rising player numbers, following October 2024 player protection measures including deposit limits
• Average monthly player losses decreased from €146 to €119 after new regulations, with high-loss players dropping from 4% to just 1.2% of accounts

The Netherlands Gambling Authority (KSA) has documented a historic shift in the country’s gambling landscape, with illegal operators generating more revenue than licensed providers for the first time since online gambling regulation began in 2021.

The channelisation rate for gross gaming revenue fell from 51% to 49% in the first half of 2025, meaning the majority of betting money now flows to unregulated operators.

Legal market gross gaming revenue totalled €600 million between January and June 2025, representing a 16% decline from €697 million in the previous six months. The drop occurred despite growing player engagement, with monthly active accounts rising from 1.18 million to 1.29 million during the same period, according to KSA latest report.

Player protection measures take effect

The revenue decline follows comprehensive player protection regulations introduced last year on 1 October 2024, including monthly deposit limits of €350 for new players and €150 for those aged 18-24. Players seeking higher limits must now engage in mandatory contact with operators, who are required to explain the risks and consequences of increased spending.​

These measures have achieved their protective objectives. Average monthly losses per player fell from €146 to €119 following implementation. The proportion of players losing more than €1,000 monthly dropped dramatically from 4% to 1.2%.

Young adults aged 18-24 continue to account for 23% of all accounts whilst representing just 9.3% of the adult population, though their average monthly losses remain lower at €37 compared to €78 for older players.​

The authority estimated that 5.7% of the adult population gambled legally online during the first half of 2025, up from 5.4% in the previous period. Approximately 839,000 people used licensed operators during this timeframe.​

Black market growth accelerates

The KSA expressed concern about the parallel expansion of illegal gambling, noting that player channelisation remains stable at 94% despite the declining revenue channelisation. The authority suggested that players may be migrating to unregulated operators to avoid protective measures they perceive as restrictive.​

Search volume data for the top 100 illegal gambling websites showed increases following the implementation of stricter regulations, potentially indicating market migration. The illegal market generated an estimated €617 million in gross gaming revenue during the first half of 2025, slightly exceeding the regulated sector for the first time.

The regulator acknowledged this development as troubling, emphasising that players using illegal operators receive far less protection than those gambling with licensed providers. The authority continues enforcement efforts against unlicensed operators whilst monitoring the effectiveness of its regulatory framework.​

Rising gambling taxes compound the challenge, increasing from 30.5% to 34.2% in January 2025, with a further rise to 37.8% planned for 2026. Industry observers warn these fiscal pressures may further encourage migration to unregulated operators where such costs do not apply.