The Netherlands’ regulator, the Kansspelautoriteit (KSA) has released its Spring 2024 online gambling report, providing an overview of the Dutch market.
The report summarises the state of affairs for the market for 2023 and is compiled as a result of data supplied by the country’s licence holders.
Has the Netherlands gambling market levelled off?
In 2023, gross gaming revenue totalled €1.39bn (£1.19bn/€1.49bn). This represented an increase of 28% from €1.08bn in 2022. The report notes that in H2 of 2023, the market only increased by 1% in size compared to €696m in H2 of 2022. Online casino also accounted for 77% of all revenue.
The number of total player accounts rose significantly in 2023, from 970,000 in December 2022 to 1.1 million in December 2023. The report estimates that 726,000 players were active with legal providers.
This means that approximately 5% of the adult population are active gamblers in H2 of 2023. In calculating the average number of active players per month, the KSA estimates an average of 448,000 players.
The report also highlights that the aggregated European online market is growing faster than the Netherlands.
According to data supplied by H2 Gambling Capital, it is estimated that the EU market will increase by 12% in 2024. H2 estimates that the average annual growth in the Netherlands will be fixed at approximately 8% over the next five years. The KSA suggests that “restrictive
measures and circumstances can slow down growth”.
Active gambling in the Netherlands
On average, players are estimated to visit 2.9 gambling websites per month. This is a slight increase compared to H1 2023, when players visited 2.6 websites per month.
Of the players who visited gambling websites in a month, more than half visited one website. 19% of players visited four or more websites.
It is also estimated that players lost an average of €958 over the last six months. This translates to an average of €160 per month. In the KSA’s H1 2023 report, this figure was €170, suggesting a slight decline.
Young adults (18-23 years old) also receive special focus on the monitoring report given their perceived vulnerability. In total, young adults gambled €135m in 2023. This is 9.8% of aggregated turnover in 2023. The share remained “fairly stable” throughout 2023.
In total, this demographic makes up 9.5% of the population. Of all active accounts, 22% are estimated to be from this demographic. The report observes that they lose less money per account than older players (€52 per month).
Effect of advertising restrictions in the Netherlands
The Netherlands’ untargeted advertising ban came into effect on 1 July 2023. As a result, mass-advertising on radio, television, outdoor locations and written media is prohibited. Sports sponsorships are also included in the ban. However, a transitionary period is currently in place for existing sponsorship agreements.
As a result, the report notes that the number of website visits by people who have not gambled previously has decreased sharply. However, the KSA estimates that the restrictions have not had an effect on the overall size of the market.
The restrictions are also believed not to have had an effect on channelisation. When re-regulating the market in 2021 the KSA’s target was to ensure that at least 80% of the market played with regulated operators within three years. In terms of players and web traffic, the channelisation is currently estimated to be 90%, suggesting success.
It is also noted that the Central Register for the Exclusion of Gambling (Cruks) has seen its number increase steadily throughout the year. As of January 2024 this totalled 63,543.
Total licences issued in the Netherlands
Another key highlight of the KSA’s report is the total number of licensees active in the market. When the market opened in October 2021, ten providers initially received a licence. This included Holland Casino, TOTO Online, Bet365 and Tombola. By the end of H2 2023, the KSA had issued 22 permits.
Notably, a permit holder can operate multiple brands. In total, there are currently 25 regulated websites for online casino, seven poker and bingo sites, 17 sportsbooks and nine specific horse racing sites.