The Dutch Gambling Authority (Kansspelautoriteit or KSA) has reported vital development within the regulated playing market, with the market’s gross gaming income (GGR) growing by 21.2% in 2023, reaching €4 billion. However, the KSA has additionally raised considerations relating to the nation’s channelisation fee, which measures the proportion of playing exercise performed via authorized operators. While some estimates put the speed as excessive as 95%, different information suggests it could be nearer to 87% as a result of larger participant spend on unlawful websites.
Conflicting Channelisation Data
Two new studies launched by the KSA on October 10, 2024, present detailed insights into the present state of the Dutch playing market. The Autumn 2024 Monitoring Report, which depends on information from analysis corporations GfK and H2 Capital, estimates that the channelisation fee ranges between 87% and 95%, surpassing the preliminary goal of 80% set in 2021.
According to GfK information, 95% of gamers solely visited authorized playing websites throughout the first half of 2024. However, a second evaluation, which considers income and participant spend throughout each authorized and unlawful platforms, suggests the channelisation fee is nearer to 87%. This technique accounts for the truth that gamers are likely to wager and lose extra money on unlawful playing websites, which stay engaging as a result of lack of regulatory oversight.
KSA Chairman Michel Groothuizen commented on the findings, saying, “The stricter we regulate, the greater that difference can become.” He added that whereas the 95% channelisation fee is commendable, the difficulty of unlawful playing stays a priority because it usually includes larger participant spending.
Market Growth and Player Behaviour
The KSA’s Market Scan 2024 report reveals that the Dutch playing market has continued to increase, significantly within the on-line on line casino sector. Online on line casino video games, together with desk video games and slots, accounted for 27.25% of the entire GGR in 2023, producing €1.09 billion. This represents a 34% year-on-year enhance in comparison with 2022. Land-based casinos, whereas recovering, haven’t but reached pre-pandemic ranges, with a 19% development to €250 million in 2023.
Player spending within the Netherlands stays beneath the European common. Dutch adults spent a mean of €272 per capita on playing in 2023, in comparison with the EU common of €339. The Netherlands ranks simply above Ireland however behind nations like Finland, France, and Denmark by way of playing expenditure.
Despite considerations about channelisation, information from the primary half of 2024 signifies continued development within the authorized market. The GGR for the primary six months of 2024 reached €752 million, an 8% enhance from the second half of 2023. This development was partly pushed by an enhance in sports activities betting throughout main occasions just like the European Championship.
Sports Betting and Other Sectors
Sports betting stays a comparatively small portion of the Dutch playing market, contributing solely 9% to the entire GGR. Despite this, income from sports activities betting has greater than tripled for the reason that legalization of on-line playing in 2021. The majority of sports activities betting income—83%—comes from on-line platforms, with land-based betting accounting for under 17%, largely managed by Dutch monopolies like Zeturf and TOTO Winkel.
Lotteries proceed to carry a major share of the Dutch playing market, sustaining a 30% market share in 2023, down barely from 34% in 2022. This sector is completely land-based, with no authorized on-line lottery choices presently out there.
Future Outlook and Tax Concerns
Looking forward, the Dutch playing market is predicted to face elevated challenges as a result of a forthcoming tax hike. In January 2026, the playing tax fee will rise from 30.5% to 37.8% of GGR, a transfer that has sparked concern and opposition inside the trade. Although the federal government plans to introduce the tax enhance regularly, operators worry that the upper tax burden might drive extra gamers to unregulated, unlawful platforms.
In 2023, Dutch playing operators paid €117 million in taxes, alongside €698 million in charitable contributions. KSA Chairman Michel Groothuizen emphasised that the KSA will proceed to watch the consequences of coverage modifications, together with the impression of the tax hike, via future studies. He expressed curiosity in regards to the upcoming findings within the subsequent monitoring report due in spring 2025, which can additional inform regulatory choices.
Source:
“State of affairs of the Dutch gambling market 2023-2024“, kansspelautoriteit.nl, October 10, 2024.
