Before 2021, the Netherlands Gambling Authority (Kansspelautoriteit, or KSA) pur in force a ban on online gambling, imposing fines on websites attempting to operate in the Dutch market. However, after years of legal discussions, online gambling was finally regulated in the Netherlands in 2021. Consequently, licensed Dutch gambling websites have become widely available, and most players in the Netherlands now prefer these officially licensed platforms over black market sites.
The introduction of a new legal framework has significantly developed the market. Initially, only 10 operators were approved for a Dutch online gambling licence when the industry launched on October 1, 2021. Since then, the number of licenced operators has grown, with 28 licenced online casinos as of May 2024, 25 of which are currently in operation. The remaining operators are expected to launch their services soon. Moreover, existing licensees can apply to expand their approved segments.
Recently, on April 16, 2024, Socialist Party MP Michiel van Nispen put forward motions to ban online gambling advertising and “high risk” online gambling, including games of chance like slots. These motions narrowly passed in the House of Representatives.
Implementing such a ban could potentially drive players back to black market sites, negatively impacting the regulated industry and state revenue. According to a Spring 2024 online gambling monitoring report from the Gaming Authority, 77 percent of all turnover currently comes from online casinos. The goal of re-regulating the market in 2021 was to shift players from black market sites to legal platforms.
While a majority of 79 MPs voted in favour of banning games of chance, particularly online slots, it remains to be seen if this will become law. The final decision rests with Franc Weerwind, the Minister for Legal Protection in the Netherlands, who will review this legislation.
Moreover, the four parties aiming to form a new coalition government in the Netherlands are planning to increase the tax on gambling. According to a budgetary appendix in the coalition agreements, there is a proposal to raise the gambling tax to 37.8 percent.
This news has alarmed the Dutch Online Gambling Association (NOGA). Peter-Paul de Goeij, NOGA’s general director, expressed serious concerns, stating that this move “endangers the viability of the legal Dutch gambling market.”
De Goeij emphasised the risk, noting that illegal gambling operators, who do not pay taxes and are not subject to the stringent Dutch legal and regulatory requirements, are already competing for Dutch consumers. He warned that the proposed tax hike could backfire, as the projected €200 million budgetary gain might be overshadowed by significant social harm. This harm could result from more Dutch consumers turning to illegal gambling providers, who evade taxes and lack regulatory oversight.
