Dutch Legal Gambling Market Declines as Illegal Sector Expands

(AsiaGameHub) –   According to the Netherlands Gambling Authority’s (KSA) spring report, the Dutch regulated gambling sector is experiencing a long-term decline in gross gaming revenue (GGR). Data from the second half of 2025 reveals that while the legal market remained stagnant compared to the first half of the year, the unlicensed segment saw continued expansion.

Between July and December 2025, the number of licensed providers rose slightly from 30 to 31. The number of customers using authorized platforms fell to 810,000 from 850,000 in the previous half-year. Conversely, active accounts increased by approximately 100,000, indicating that gamblers are utilizing a wider variety of operators. The KSA attributes this trend to new regulatory measures, such as the deposit limits implemented in October 2024.

Total GGR for the latter half of 2025 reached roughly €602 million, representing a minor increase of less than 1% over the first half. However, when accounting for inflation, this suggests a period of stagnation and decline caused by a smaller player base and weakened operator results. Figures from H2 Gambling Capital highlight that the broader European online gambling market expanded by 11% during 2024–2025, supporting the KSA’s conclusion that local regulations are hindering growth in the Netherlands.

This downward trajectory persists, with Dutch legal online gambling GGR falling from €697 million in Q2 2024 to an overall decrease of about 18% across 2024 and 2025. The KSA points to the regulatory restrictions introduced in October 2024 as a primary driver for this contraction, as previously reported.

Simultaneously, the regulator observed an uptick in illegal gambling activity. During H2 2025, a higher number of participants engaged with unlicensed sites. Estimates indicate that between 20,000 and 30,000 individuals used illegal platforms exclusively—an increase from prior periods—while a smaller segment utilized both regulated and unregulated services.

Currently, about 91% of gamblers stick solely to licensed operators, a decrease from the 94% recorded in the first half of the year. The financial data is more alarming, showing that only 49% of total betting volume remains within the legal market, down from 56%. The KSA suggests that the significant losses occurring in the black market, where player protections are non-existent, account for the disparity between user participation and revenue metrics.