Netherlands illegal gambling market expands, channelisation drops below 50%

(AsiaGameHub) –   In 2025, the illegal gambling market in the Netherlands exceeded the legal sector in revenue, as stringent player protection rules are driving gamblers toward the black market.

The Dutch gambling authority, Kansspelautoriteit (KSA), has expressed concern over channelisation, which dropped from 51% at the close of 2024 to 49% in H1 2025. Its annual report for 2025, released on Tuesday, cautioned that the illegal market has now overtaken the licensed sector based on operator Gross Gaming Revenue (GGR).

Unlicensed operators now represent the majority of casino spending in the Netherlands. Meanwhile, the total revenue from licensed operators stayed relatively flat in the second half of 2025 compared to the prior year, amounting to €602 million.

The implementation of stricter player protection measures over recent years, including deposit limits and higher gambling taxes, has caused a decrease in channeling. This decline indicates that close to half of all gambling expenditure is moving to unlicensed operators.

Last October, the regulator imposed deposit limits of €700 for players over 24 and €300 for those aged 18 to 24. While these rules were designed to foster safer gambling, they have instead curbed spending on legal platforms.

These deposit restrictions, established by the authority in October of the previous year, were initially meant to encourage safer gambling. However, the policy has led to a reduction in the amounts players wager on regulated sites.

Despite 1.38 million player registrations in H2 2025, the average spending per player on regulated sites fell compared to H1 2025. The high number of registered players has not translated into higher spending, as deposit limits and legal compliance have caused a decrease in the average gambling amount per individual.

KSA Chairman Michel Groothuizen has stated that the regulator will combat illegal operators and their support networks through innovative strategies, instead of targeting individual illicit sites sequentially.

The KSA reports that the illegal online gambling market was valued at approximately €617 million in H1 2025, while licensed operator activity remained at a comparable level of around €600 million. The authority also noted that the player channelisation rate remains high at 94%, meaning most registered players maintain accounts with licensed providers but have started using unlicensed options, both online and offline.

Reports of illegal gambling to the KSA increased by 34% year-over-year in 2025, totaling 2,005. In response, the regulator has launched a new collaborative effort named Project Disconnect.