Illegal gambling surpasses regulated market in the Netherlands, KSA reports


Ani Ghahramanyan
  • 2 min read
Illegal gambling surpasses regulated market in the Netherlands, KSA reports

The Netherlands Gambling Authority (KSA) has reported a continued increase in illegal online gambling activity in the country, even as the regulated sector declines.

Its semi-annual Monitoring Report for the first half of 2025 shows that, for the first time since online gambling was legalised in 2021, the black market has overtaken the legal one in size. This trend reflects findings in other jurisdictions where tighter restrictions have led to growth in unlicensed play.

Between January and June 2025, licensed operators generated about €600 million in gross gaming revenue (GGR) – down 14% from the previous six months. The decline followed the rollout of new responsible gambling rules in late 2024, including deposit and play limits under the Responsible Gaming Policy 2024. While these measures improved player protection, they also appear to have slowed revenue growth.

By contrast, unlicensed operators were estimated to generate €617 million in GGR, signalling a major shift in the market balance. The KSA attributed the downturn in legal activity partly to stricter player safeguards and reduced advertising options, both of which may have pushed players toward unregulated sites.

Based on Google search data, the authority found that the overall channelisation rate,  the proportion of players using legal sites — fell to 49% in early 2025, compared with 51% in late 2024. Although the average monthly loss per player dropped from €146 to €119, the number of users turning to illegal platforms increased.

Demographic data also reveal that around 839,000 Dutch adults (5.7% of the population) gambled legally online in early 2025, up slightly from 5.4% six months earlier. Players aged 18-23 accounted for 23% of all accounts, despite comprising less than 10% of adults, and generated €66 million in GGR – mostly through sports betting.

Engagement levels remained strong: the average player held accounts with nearly three operators, and half used at least one account weekly. About 0.8% of players lost more than €1,000 per month, while 55% lost less than €100.

Legal operators’ visibility continues to shrink due to successive advertising bans introduced in 2023 and extended through 2025, resulting in a 20% decline in online promotions. Many companies also scaled back activity on social media to comply with underage exposure rules, indirectly benefiting unlicensed sites.

Meanwhile, gambling-related harm indicators are rising. In 2024, 2,708 people sought treatment for gambling addiction – a 10% increase year on year. Registrations in the national self-exclusion system (Cruks) surpassed 101,000 by August 2025, nearly half of them new within the last six months. Although the share of high-risk gamblers held steady at 9%, the number of moderate- and low-risk players grew, suggesting a broader drift toward problematic gambling.

Overall, while responsible gaming measures have successfully reduced average losses and improved consumer protection, they may have inadvertently driven more players to unregulated markets – underscoring the persistent challenge of balancing safety and channelisation.

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Ani Ghahramanyan Content Writer

Ani has recently stepped into the world of iGaming and is on a mission to turn the freshest insights into compelling content. With being excited by the journey she started, she is ready to share the most vibrant and innovative possibilities within the iGaming sphere with you.