Since 2021, the Netherlands has legalised online gambling, hoping to regulate the market and protect players. However, increasingly strict regulations have been put in place, including advertising bans, stricter gambling limits and tax hikes. A recent study in the Netherlands highlights the unintended consequences of restrictive measures imposed on legal gambling. Initially designed to protect players, they seem paradoxically to encourage the use of illegal platforms. This situation is giving rise to growing concern among Belgian operators, who fear that the phenomenon will spread beyond the country’s borders.
The intentions behind the restrictions
The Dutch authorities have introduced strict restrictions on legal gambling, aimed at limiting addictive behaviour and protecting vulnerable consumers. These measures include restrictions on advertising, tighter identity checks and betting limits. However, the question remains: do these restrictions really achieve their objectives?
Despite these good intentions, a recent Dutch study reveals that these measures have led to an increase in the use of unregulated gambling sites. Faced with restrictions deemed too restrictive on legal platforms, players are turning to illegal alternatives offering fewer limitations. These sites, often based in countries where regulation is virtually non-existent, offer attractive conditions: generous bonuses, simplified access and no identity checks. However, they expose players to major risks, such as fraud, piracy and lack of recourse in the event of a dispute.
In addition, the Ksa (Dutch Gaming Authority) has developed a calculation model based on consumer search behaviour to estimate the size of the illegal market. The results indicate that the channelling rate, i.e. the proportion of players using legal platforms, has never exceeded 70%. This contrasts with previous estimates and highlights the scale of the challenge posed by illegal sites.
Belgian operators sound the alarm
Across the border in Belgium, legal online gaming operators are watching the situation with some trepidation. The Dutch measures could have a direct impact on the Belgian market, which is already heavily regulated. This could not only harm the legal industry, but also expose players to increased risks.
“These players are leaving and we no longer know anything about their behaviour. Those we claim to protect with laws are disappearing from the legal circuit, so we’re no longer protecting anyone,” says Emmanuel Mewissen, head of Gaming1.
In the light of these observations, a reassessment of gambling regulation policies seems necessary. It is crucial to strike a balance between protecting consumers and preventing the use of illegal platforms.
“We must continue to regulate the legal sector to protect players, but we must also give these regulated operators a certain visibility and attractiveness to channel players and keep them in a sector where they can be protected and helped. Without this, they will inevitably leave for illegal sites,” says the Gaming Commission.