KSA’s Autumn Report Reveals Rising Youth Interest in Sports Betting

The Kansspelautoriteit (KSA), the Netherlands Gambling Authority, has released its “Autumn Report for 2024”, which provides an update on trends and activities in the Dutch online gambling market under the Remote Gambling Act (KOA).

KSA reports that the KOA market continues to grow, generating €752m ($789,6 m) in gross gaming revenues (GGR) during the first half of 2024. This represents an 8% increase from the €696m ($730,8 m) GGR in the second half of 2023. The surge in activity is largely due to the UEFA Euro 2024 Championships.

During the first half of 2024, approximately 795,000 players engaged with legal gambling providers, which KSA estimates to be 5.4% of the adult population, up from 5.0% in the previous six months.

The number of active player accounts rose to an average of 1.07 million per month, compared to 1 million in the previous half-year.

Online casino games (such as slots and table games) dominate the KOA market, generating €541m ( $568,1 m) and accounting for 72% of the market’s total GGR.

Sports betting generated between €180m to €200m ($190,8 to $212 m). Sports betting is particularly popular among young adults aged 18 to 23, with 37% of this age group engaging in it.

On average, KOA players lost €946 ( $1,003) over the six months to June 2024, with a median loss of €158 ($167,4) per month. Young adults (aged 18 to 23) account for 23% of all active accounts, though their losses are lower, at €55 ($58,3) per month, compared to older players.

KSA’s report also shares initial findings on the Dutch government’s ban on non-targeted gambling advertising, which took effect on 1 July 2023. The ban prevents gambling ads from appearing on TV networks and in outdoor spaces.

Despite the advertising restrictions, the KOA market saw a significant increase in online advertising, with an average of 141,798 ads per month in the first half of 2024, up from 70,580 in the second half of 2023.

The canalisation rate, which tracks the proportion of players using legal gambling providers, remained high at 95% in the first half of 2024, well above the government’s target of 80%. H2 Capital estimates that 87% of total GGR will go to legal providers in 2024.

In terms of safer gambling, CRUKS (the Central Register for Exclusion from Gambling) now has 75,334 individuals registered as of June 2024. Registrations increased by an average of 528 per week.

Additionally, 9% of online gamblers in the first half of 2024 were classified as high-risk players based on the Problem Gambling Severity Index (PGSI). Among young adults, 18% were considered high-risk.

On 1 October, new player protections were imposed on KOA operators, who must enforce mandatory checks on monthly deposit limits of €350($374) for player accounts belonging to those over the age of 25. For player accounts under the age of 25, operators must ensure checks on deposit limits of €150 ($161) per month.

Though not yet sanctioned, the Netherlands’ new Conservative coalition government has committed to significantly increasing the income tax on gambling operators from 30.5% to 34.2% starting on January 1, 2025, with a further increase to 37.8% in 2026.

The new gambling tax plan is expected to be finalized in November, as the government is urged to make additional changes, ensuring an exception is allowed for ‘low-risk’ gambling activities, such as lotteries, as demanded by Nederlandse Loterij to the Kamer.

Don’t forget to subscribe to our Telegram channel!