Summary
- The KSA has released a follow-up evaluation of the player protection measures for 2024.
- The regulator has observed a decrease in average losses and a reduction in the number of people requesting deposit increases.
- The regulator has not yet analyzed how much gambling expenditure is going offshore due to technical reasons.
The Dutch Gaming Authority (KSA) recently conducted an assessment on the measures introduced in the second half of 2024, designed to tackle ongoing challenges in the gaming market. Key issues addressed include the rate of channelization, the influence of black-market operations, and the establishment of a safer gambling environment to protect players. The initial survey indicated a significant decrease in the number of high losses, which aligns with the regulator's objectives.
New measures continue to yield the right results for consumers
The latest and second market assessment confirmed that the positive effects of rule changes are ongoing, with the KSA identifying several key trends, although noting a slight decline in channelization that was not significant. Since last year, the Ministry of Justice and Security has required consumers, particularly young adults, to contact operators before setting a high deposit limit, which is defined as more than €150 per week or €350 per month for young adults. The purpose of this rule is clear: to ensure that players can actually afford to lose the money they are depositing. Currently, the restrictions are set at more than €300 for those aged 18 to 24 and €700 for those 24 and older. Operators are legally required to conduct a financial assessment of customers to determine whether they can realistically afford their gambling expenditure. The KSA argues that the impact of these measures is evident, as the number of players exceeding these limits has decreased significantly from 9.7% to 2.2%. Another positive outcome, as reported by the regulator, is the reduction in the average loss per player. In the eight months leading up to the implementation of deposit limits, the average loss was €116 per month, but this has now decreased to €80 per month.
Many reasons for optimism, but some core issues persist all the same
Before the introduction of the new measures, 4% of all players lost more than €1,000 each month. However, this number has now decreased to 1% of the total player base. This reduction has, in turn, impacted the gross gaming revenue—which is calculated as the stake size minus the prizes paid out—resulting in operators reporting an 8% decrease compared to the previous year. Despite this decline, the KSA is encouraged by the results, noting that channelization has remained high at 93%. However, the regulator admits that they have not yet examined the channelization of money, meaning the proportion of total gambling expenditure that stays within the Netherlands versus what is spent on offshore gambling sites. Previously, the regulator estimated that 50% of total gambling expenditure was captured by the offshore gambling market, a significantly concerning figure.
