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Experts Warn Dutch Gambling Ad Ban Will Benefit Illegal Operators

by Sienna Marques
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Experts Warn Dutch Gambling Ad Ban Will Benefit Illegal Operators

The Dutch government has opted for a drastic approach to gambling advertisements, proposing a near-total ban on online gambling advertising with very few exceptions. This initiative, presented by Claudia van Bruggen, state secretary for legal protection, includes measures such as prohibiting sign-up bonuses like free bets, implementing a universal deposit limit across all platforms, enhancing the CRUKS self-exclusion register, and pledging to intensify actions against illegal gambling activities.

Van Bruggen expressed her deep concern about the increase in online gambling, particularly among young people, stating, "It is high time to reverse this trend," during the announcement of the new measures in June.

The proposed ban represents a significant tightening of existing regulations rather than an entirely new policy. The Netherlands had previously put in place restrictions such as banning well-known figures from gambling advertisements, prohibiting generic advertising since July 2023, and banning sports sponsorships starting in July 2025. However, officials have concluded that these measures have not sufficiently reduced public exposure to gambling promotions.

The landscape of gambling regulation in the Netherlands has shifted focus from the initial goal of channelisation—encouraging players to engage with licensed operators—to preventing gambling-related harm. Justin Franssen, a partner at the Amsterdam gaming law firm Franssen Tolboom, noted that the objective has changed to shielding the public from gambling-related risks rather than directing existing gamblers to regulated markets.

Concerns arise from the deteriorating performance of the licensed gambling market, with the regulator, KSA, revealing that the share of gross gaming revenue from legal operators dropped to about 49% by early 2025, while trade organizations estimate that the illegal market accounted for roughly a quarter of all gambling activity in the Netherlands. Licensed operators attribute this decline to the current gaming tax rate of 37.8% and the increasing advertising restrictions.

When asked for evidence supporting a complete ban, Franssen stated, "It’s a very simple answer: there is no evidence that it will succeed," highlighting that even the KSA has voiced concerns about a total ban and suggested against it. He pointed out that a vast majority of gambling advertisements on Dutch social media already originate from illegal sources, estimating that over 95% are from the black market.

In June, VNLOK, a trade association, filed a lawsuit against Meta and also lodged a complaint with the European Commission concerning a surge of illegal gambling ads. VNLOK reported over 70,000 gambling ads on Meta platforms in the final quarter of 2025, with more than 95% coming from unlicensed operators, and less than 5% of them being removed. The KSA submits thousands of complaints each month to Meta, but offending ads tend to reappear quickly under different names. The illegal gambling market in the Netherlands has been estimated to exceed €1 billion annually, rivaling the regulated sector.

Franssen warns that implementing a total ban would merely benefit illegal operators by preventing licensed firms from informing consumers about their legal options. "What you ultimately achieve with a total ban is that you hand the entire stage to illegal operators," he said, adding that it's one of the worst policy ideas he has encountered in years.

International comparisons show similar patterns. Denmark considered a complete ban but instead opted for stringent measures last October, including a ban on advertising during live sports and age restrictions in marketing. However, even these restrictions have led to significant growth in the unlicensed market, diminishing the channelisation rate from 90% to 70% in just three years, according to Morten Rønde of the Danish online gambling association Spillebranchen.

Italy presents a stark example, having instituted a near-total ban on gambling advertising and sponsorship since 2018 through its Dignity Decree. Quirino Mancini, a partner at WH Partners Italy, criticized this approach as shortsighted and noted that illegal gambling remains robust in Italy, estimated at €22 billion, with minimal positive impact on channelisation. The operational guidelines have allowed loopholes that unlicensed operators exploit.

A 2024 deposit regime established in the Netherlands, which included loss limits and affordability checks, has yielded positive results, reducing both breaches of allowance and average monthly losses among players. However, critics worry that the trend toward increased restrictions, tax hikes, and other additional demands will only push more players toward illegal markets.

Amid these challenges, the Dutch government proposes to counter the black market through enhanced enforcement measures, but Franssen argues that this approach will have limited success. The ongoing trends indicate that the legal market may continue to decline.

While legislative changes can take time—potentially two years or more—the current trends of an escalating black market and stagnating channelisation rates may worsen. When assessing the risks of the proposed approach, Mancini illustrates his concern succinctly: "Absolutely so. This is quite a safe bet." Rønde sums it up starkly, suggesting that the situation in the Netherlands is already critical, as evidenced by the channelisation rate standing at around 50%.

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