Dutch iGaming Celebrates 1-Year Success Despite Regulatory Uncertainty

One year after its regulated online gambling market launched, the Netherlands reports satisfactory results. Despite continued black market activity and advertising conflicts, statistics show impressive channelisation from offshore to licensed operators. The Kansspelautoritiet (KSA) says that revenues support a steady growth rate and market stability. 

Although a handful of the largest operators were not part of the initial 10 licensees one year ago, legal providers have doubled since October 2021. Will the lawmakers build on the foundation of the past year or continue with talks of implementing more stringent requirements?

 When the Dust Settled

Like many new systems, the Dutch market had its fair share of challenges to resolve at the beginning of the market launch. System failures, a short list of approved operators, and controversial license stipulations ensured an all but smooth market entry. Yet, one year later, the KSA celebrates a successful first year with government targets met well in advance and stable revenues.

According to revenue statistics, gambling income for the first quarter of 2022 reached €240 million, and in the second quarter, revenues ended at €246 million. These numbers followed rapid growth in the region's gambling market, and the total income from January to July this year reached €569.7 million. Monthly revenues stabilised at an average of €80 million.

After enacting the new KOA Act on 1 October 2021, Dutch players could choose from 10 licensed operators. The list excluded popular brands such as Kindred, LeoVegas, and Betsson due to an exclusion stipulation enforced by the regulator. Thanks to the KSA's continued efforts to present licensed providers and the expiration of the exclusion stipulation, there are 22 licensed operators one year later. 

 Better Options Inspire Better Decisions

In its report on the past year, the KSA noted a significant achievement in channelling players toward legal operators. With the enforcement of the new gambling Act, the Dutch parliament expressed its goal of 80% channelisation. The Netherlands Online Gambling Association (NOGA) reported that current rates exceed the government's three-year plan.

According to a recent study by NOGA, 85% of Dutch players use licensed operators when participating in remote wagers. With 15% of players still using offshore sites, the KSA expressed that illegal online sites are still a concern in the country. The regulator indicated that these figures could be overly optimistic as NOGA only included the most popular and larger black market operators. 

Although there might be a deviation in the percentage of Dutch players who choose licensed operators, there has been a noteworthy improvement since the market launch. Initial lenient approaches may have helped the success of the last twelve months, including the rate of marketing allowed.

 Is There a Detour Ahead?

The early success and stability of the Dutch gambling market bring feelings of Déjá vu, especially when we consider recent reports about new restrictions on marketing and other changes made throughout the past year. Sweden's remote gambling industry followed a similar route but faltered with increasing restrictions which drove players in the opposite direction.

With the KSA chair, René Jansen calling for tighter regulations and other anti-gambling lawmakers applying pressure for marketing bans, will the Netherlands follow in the footsteps of other EU markets? The regulator anticipates stable growth rates between 13% to 15%, but, as others have proved, regular releases of stricter laws impede growth and cause stagnation.