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Experts Warn Netherlands Gambling Ad Ban May Favor Illegal Operators

by Sienna Marques
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Experts Warn Netherlands Gambling Ad Ban May Favor Illegal Operators

The Dutch government has enacted a significant change to its approach to gambling advertisements, opting for a near-total ban on online gambling advertising with limited exceptions. This measure, announced by Claudia van Bruggen, the state secretary for legal protection, goes beyond previous restrictions, eliminating sign-up bonuses such as free bets. Additional components of the proposal include a generalized deposit limit for all operators, a fortified self-exclusion register known as CRUKS, and a commitment to combat illegal gambling activities.

Van Bruggen expressed concerns about the rising number of individuals, especially youth, engaging in online gambling, stating, "It is high time to reverse this trend."

This recent ban is the latest development in a continuous tightening of gambling regulations. Following a prohibition on role models in gambling advertisements and untargeted advertising effective from July 2023, along with a complete ban on sports sponsorship set to begin in July 2025, officials in The Hague have determined that these measures did not sufficiently decrease public exposure to gambling. When previous regulations did not achieve desired effects, the government decided to escalate restrictions further.

However, experts note a deeper issue beyond advertising policies. Justin Franssen, a partner at Amsterdam-based gaming law firm Franssen Tolboom, believes the original regulatory goal of channeling players toward licensed operators has been effectively abandoned. He remarked, "Yes, I think it has – and actually, not even that quietly," alluding to earlier comments from former state secretary Teun Struycken. The current focus appears to prioritize preventing gambling-related harm over guiding players to the regulated market.

This change comes as regulatory data suggests the existing legal market is struggling. By early 2025, it accounted for about 49% of gross gaming revenue, while trade associations estimated that the black market constituted around 25% of gambling activities in the Netherlands. Licensed operators have attributed the decline to a gaming tax of 37.8% of gross gaming revenue and the very advertising regulations the government seeks to intensify.

The effectiveness of a total advertising ban is heavily questioned. Franssen stated simply, "There is no evidence that it will succeed," highlighting the KSA's own concerns and opposition to such a ban. He noted that a significant majority of gambling advertising on social media is already illegal, estimating that around 95% of such advertisements originate from black market operators.

In June 2025, the trade association VNLOK took action against Meta, filing a lawsuit and a complaint with the European Commission in response to a surge of illegal gambling ads. During the last quarter of 2025, VNLOK reported over 70,000 gambling advertisements on Meta platforms, with over 95% being from unlicensed entities and fewer than 5% being removed. The KSA routinely files thousands of complaints with Meta, but ads often remain online for about a day and a half before reappearing under different names. VNLOK now estimates that the illegal gambling market in the Netherlands could exceed €1 billion annually, rivaling the size of the regulated sector.

Franssen warned that banning licensed operators will only benefit illegal ones, saying, "What you ultimately achieve with a total ban is that you hand the entire stage to illegal operators while preventing licensed operators from informing consumers that a legal, regulated and protected alternative exists. In my view, it’s one of the worst policy ideas I’ve seen in many years."

The Dutch are not alone in facing such challenges. Denmark recently tightened its gambling regulations but rejected a total ad ban. In 2025, the country noted a significant increase in the unlicensed market, which dropped its channelization rate from 90% to 70%. Morten Rønde, outgoing director of Danish online gambling association Spillebranchen, observed that advertising restrictions, coupled with high taxes and limited game offerings for licensed operators, have contributed to this issue.

Italy has implemented a total ban on gambling advertising through its Dignity Decree since 2018, and partner Quirino Mancini from WH Partners Italy criticized its effectiveness. He stated that illegal gambling in Italy remains prevalent, estimated at €22 billion in revenue, and that the impact of the advertising ban on channelization to licensed markets has been minimal.

Despite the ambitious intentions behind these regulations, Franssen is skeptical about their consequences. The imposition of further advertising restrictions and tax increases has already pushed the gross gaming revenue of black-market entities past that of licensed operators—an outcome that the regulator has acknowledged. Excessive restrictions could drive even more players toward illegal markets, he argued.

The government's strategy for battling illegal gambling hinges on enhanced enforcement tools for the KSA. Franssen, however, believes the black market will continue to evade such measures, likening it to quicksilver that always finds a way around enforcement.

One silver lining for licensed operators is that a total ban will require primary legislation, which could take two years, a time frame that could see current trends in black market growth deepen. Mancini bluntly stated, "Absolutely so. This is quite a safe bet" when asked if the approach risks exceeding the limits of a regulated market. Rønde offered a grim assessment, asserting, "Everything indicates that the Dutch policymakers have already gone too far. When surveys show that the channelization rate is down to 50%, this tells me that the market is already not working. However, it seems like some stakeholders are willing to put the last nail in the coffin and bury the hope of a viable gambling market."

As the Dutch government navigates these changes, it may discover that silencing the licensed market doesn't eliminate the conversation surrounding gambling; instead, that dialogue simply shifts to places beyond the regulator’s oversight.

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