The Chairman of the Dutch Gambling Authority (KSA), Michel Groothuizen, believes that closer cooperation between gambling regulators is essential in combating the illegal market. The KSA Chairman also calls for more active intervention by financial institutions and large tech companies, as they also play an important role in consumer protection.
Groothuizen’s comments come as he reflects on the four years since the legalization of online gambling in the Netherlands.
According to the KSA Chairman, the goals set at the launch of the online gambling market remain relevant today – eliminating the illegal market and protecting players. However, these goals have become even more important as the industry has matured.
“The objectives of that time remain relevant today: curbing illegal supply and protecting players from the risks of addiction,” said Groothuizen.
“In an era of explosive development in digitalisation and mobile technology, these goals have only become more urgent, and certainly not easier to achieve. Legislators were only partially able to anticipate the impact of the rise and widespread adoption of smartphones, and they didn’t really equip us as regulators to handle this.”
Gambling advertisement has changed in the Netherlands over the past four years as well, with role model and untargeted advertising banned during that period and online advertising remaining in place under strict conditions.
Yet, Groothuizen pointed out the difficulty in this area as advertising can have a significant impact on the channelisation rate and ultimately drive players towards the illegal market.
“A total ban seems appealing, but it also has significant drawbacks, especially since it would primarily benefit the illegal market. Channelisation remains high, exceeding 90%, but when we consider the amount of money circulating in both sectors, it’s much less impressive.
“For the first time, it’s becoming clear that even more money is circulating in the illegal market than in the licensed sector. And then we face a dilemma: we want strict regulations in the Netherlands to protect players, but those strict regulations could drive players (especially the most active among them) even more towards illegal platforms, where there’s no protection.”
As such, player protection has been elevated even further, with deposit limits brought into play, but it has also put pressure on the regulated market, alongside gambling tax increases, which are expected to rise again in 2026.
“This has undoubtedly diminished the attractiveness of the Dutch market for potential license holders,” said Groothuizen.
“The upcoming licensing round will determine which providers want to continue investing in the Netherlands. I’ve repeatedly emphasised that good behaviour matters: anyone who hasn’t followed the rules in recent years must be able to explain themselves.”
In battling the illegal market, Groothuizen has called for greater collaboration from all parties, since there are a lot of cross-market similarities that each country’s regulator can share information about.
“The solution lies not in separate enforcement by regulators in the various European countries, each of which has limited power, but in collaboration. We must act collectively, like a kind of ‘gambling Interpol’. Big tech and financial institutions also have a responsibility here: without visibility or payment options, the appeal of illegal sites ultimately disappears.
“To give substance to this collaboration, we are currently working with legal gambling providers in the Netherlands, as well as with many other parties that can put up barriers against illegal offerings. Internationally, we are deepening our collaboration with colleagues across the border.
“Of the 20 largest illegal parties in the United Kingdom, six also appear in the Dutch top 10. Combining our and the British knowledge of these illegal providers makes us both stronger and hopefully more effective. That’s why we signed an agreement with the British in October to further develop our collaboration. But that’s just the beginning.
“It’s an uphill battle in any case, but only together do we have a chance of maintaining a healthy, safe, and fair online gambling market and preventing the illegal sector from winning the game.”
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