The Netherlands’ gaming authority, Kansspelautoriteit, has published its semi-annual monitoring report for the Dutch online gambling market, noting that gross gaming result (BSR: stake minus payout) in the first half of 2024 is up by 8% in comparison to the last six months of 2023.
Regarding channelisation, KSA’s report revealed that it is currently expecting legal operators to see 87% of total BSR in 2024, while 95% of players are also only playing with licensed operators.
However, these channelisation figures have caused concern from the trade associations Vergunde Nederlandse Online Kansspelaanbieders (VNLOK – Licensed Dutch Online Gambling Providers) and Nederlandse Online Gambling Associatie (NOGA – Dutch Online Gambling Association).
Online BSR for the Dutch market has risen in H1 2024 to €752m (H2 2023: €696m). KSA attributed this increase to the number of bets placed during the Euro 2024 football championships, and “therefore not necessarily an indicator of the total growth in 2024”.
The authority added that online casino games had the largest share of the total online BSR for the first half of the year, accounting for a 72% share.
KSA noted that the number of player accounts has also risen in the past six months, growing from one million per month at the end of last year to 1.07 million per month at the end of the first six months of 2024.
Since players can have more than one account across several operators, the number of players is lower, but it has still grown in the past half year.
Data from research agency GfK in the report stated that this figure is approximately 455,000 players per month in H1 2024 (H2 2023: 452,000 players per month). GfK data also said that 95% of players are only playing with licensed operators.
According to the authority, online players lost an average of €946 over a period of six months, or €158 per month. Young adults (18 to 23 year olds) accounted for 10.8% of BSR during H1 2024 (H2 2023: 9.6%) with 23% of accounts used belonging to young adults, losing on average €55 per month.
Channelisation concerns
In terms of channelisation, data suppliers H2 Gambling Capital has estimated in the report that 87% of total revenue will be with legal operators in 2024, but the forecast takes into account gambling tax remaining the same as it is now.
However, in response to the authority’s report, the trade associations VNLOK and NOGA have expressed concern over these figures.
NOGA and VNLOK believe that while channelisation has decreased slightly (2023: 88% BSR with legal operators), but the pool of players playing on illegal websites has fallen (2023: 90% of players gambling only with legal operators), these players are spending more money on their gambling.
The two groups therefore think that players who spend more on their gambling are switching to unregulated and illegal offerings.
Both organisations have called for the continued monitoring of illegal market developments, but also to improve current monitoring since the KSA stated that current monitoring only takes into account providers who are also licensed elsewhere in the world, whereas providers with no licences are not included. As a result, channelling in terms of BSR could be lower than estimated.
Helma Lodders, Chair of VNLOK, and Eric Konings, Acting Director of NOGA, said: “It is encouraging that many people who want to play are able to find a legal provider. At the same time, it is worrying that players who opt for the illegal offer spend more money there.
“This raises the question of whether we are sufficiently successful in properly protecting the most vulnerable groups of players, such as minors, young adults or problem gamblers. We know that illegal gambling sites are particularly attractive to these groups. And recent research has shown that minors can play with illegal providers without many problems.
“These groups are now in danger of disappearing from statistics, while they deserve extra protection.”
Loket Kansspel awareness
Within its report, KSA highlighted that while there are “no hard figures on the total number of people with a gambling addiction in the Netherlands”, 2,456 people were treated for gambling addiction in 2023, 28% more than 1,920 people reported in 2022.
In response, VNLOK and NOGA are calling for an increase in awareness of Loket Kansspel – a support centre for people with gambling problems – via targeted awareness campaigns. VNLOK added that its members are open to discussions with the KSA on how it can help increase Loket Kansspel awareness.
Lodders and Konings said: “The latest figures from the Ksa show that the number of help and information calls has decreased. This is positive if it means that fewer players experience problems due to participation in online gambling. This is negative if it means that players do not know where to find Loket Kansspel.
“For example, research by IPSOS shows that 79% of players have never heard of the Loket Kansspel. Only 1% have ever had contact with Loket Kansspel.”
VNLOK and NOGA also spotlighted how registrations to the Dutch Central Register for the Exclusion of Games of Chance – Cruks – has increased to 75,334 in June 2024, but noted that there is still “room for improvement”.
Their statement read: “Providers would like to talk to players who have been registered in Cruks and want to participate in online gambling again.
“In this way, a provider can first assess whether everything is going well again or whether additional restrictions are necessary. In addition, the process of involuntary registration is still too long. This sometimes takes several months. This must be faster.
“Finally, a relatively large number of involuntary registrations are still rejected. Of the 206 registrations that providers made, 77 were approved. A number of players may have registered voluntarily, but that still leaves a relatively large number of rejections. It is important to further investigate why these applications are rejected.”
KSA has also published its annual Market Scan of the Dutch gambling market, reporting that the online market continued to grow in line with expectations in 2023, while the land-based sector has almost returned to 2019 levels.
