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The Netherlands‘ gambling regulator (KSA) has reported that illegal gambling operators now have a greater share of the market than legal companies. This follows the KSA’s introduction of a range of measures that restrict regulated companies, including a ban on advertising in sports, increased taxes, and deposit limits.
The KSA published its fall gambling monitoring report, which notes that the amount being gambled at regulated gambling platforms dropped from 51% of the overall share to 49% in the first half of 2025.
The regulator says, “This downward trend may be explained by players shifting to illegal offerings due to the new player protection regulations, where these perceived restrictive rules do not apply.”
It adds, “The KSA considers this a worrying development, as players in the illegal market are much less well protected.”
Is Deposit Limit System Working?
The report notes that player losses have decreased from an average of €146 ($168) per month last year to €119 ($137) per month this year. This is due to the KSA introducing a deposit limit for players in October last year.
Players are now prohibited from depositing more than €700 ($796.24) a month, with this amount dropped to €300 for those aged between 18 and 25.
However, this limit is per account and not per player. The report notes that the number of accounts has increased by over 7%, up from 1.18 million last year to 1.29 million in the first half of 2025.
The KSA admits, “A player can have multiple accounts, so the number of accounts doesn’t equal the number of people gambling.”
Additionally, the report notes that more money is being gambled at unregulated sites. Due to the lack of official reporting from unlicensed companies, the true figure being gambled cannot be accurately known. It raises the question of whether a deposit limit is a useful tool to curb gambling losses.
In the UK, new regulations require gambling companies to offer users the opportunity to set deposit limits. However, the limit is set by the user rather than an authority.
Do Gambling Ad Restrictions Reduce Gambling?
In addition to the deposit limit, the KSA has implemented a ban on gambling advertising in sport. The regulator said that companies were following the ban after its introduction in July.
The recently published report says that the prohibition of gambling advertising has had the desired effect. It states, “The advertising restrictions achieved their main purpose: reducing exposure among young adults and vulnerable groups.”
One effect was a sharp decline in the number of users opening accounts at regulated sites. Operators reported a 35% decline in new player registrations immediately following the advertising ban. However, the report notes that new account registrations increased this year compared to last year.
It could also be argued that the lack of public displays of legal gambling companies contributes to more players turning to unregulated sites. In a report published by the Betting and Gaming Council (BGC) last year, 54% of users reported being unaware that they were using an illegal gambling site.
Tax Increases Reduce Revenue
The BGC also cites the Netherlands as an example of the negative effects of increasing gambling taxes. CEO Grainne Hurst warned the UK Chancellor that increasing taxes would fuel growth in the black market.
She stated, “We only need to look to the Netherlands to see this playing out right now. They lumped up tax on online gaming to 34.2 per cent in January; it directly led to a 25 per cent decrease in gross gambling revenue, and a tax shortfall of €200m.”
The KSA admitted that raising the gambling tax rate has stifled growth in the industry. KSA chairman Michel Groothuizen said, “The measures we have taken to offer players more protection have made it financially more difficult for providers. This has led to a decrease in the gross gambling result for the entire market. Consequently, the gambling tax revenues have also decreased.”
Gambling advocate groups will use the Netherlands as an example to warn countries and US states against overregulation and tax increases. Groothuizen, however, states that the measures are protecting players, and a reduction in revenue for companies and tax collectors is an inevitable consequence.