What’s changing in Dutch gambling law on October 1st

On October 1st 2024, the Remote Gambling Act (the Koa Act) will have existed in the Netherlands for exactly three years. Since the introduction of this law, which legalizes online gambling in the Netherlands, the gambling market has grown considerably. More providers, more players and higher turnovers dominate the playing field. But at the same time, the rules for this market are under pressure. And some things will change with new rules.

For example, the rules for online gambling will be further tightened with the following measures:

• Introducing limits on bets: There will be stricter limits on how much players can bet.
• Warning of risks: Gambling providers must actively warn players of the risks of their gambling behavior.
• Financial control: Gambling companies are obliged to check whether players can bear the financial consequences of their gambling behavior.
  • For deposits above €700 per month: For players aged 24 and over.
  • For deposits above €300 per month: For younger players up to 24 years of age.

More and more Dutch people are taking a chance

Since its legalization in 2021, the online gambling market has grown enormously. Where there were only ten providers active in the beginning, no fewer than 27 companies have a license in December 2023. This has ensured that more and more Dutch people are taking a chance on online gambling. The percentage of players who play with legal providers increased from 40% to 90%. The number of active player accounts grew from 970,000 to 1.1 million in one year.

Despite the growth, the risks of online gambling remain high. The total amount that players wager, minus the prizes paid out, increased by 28% from € 1.08 billion in 2022 to € 1.39 billion in 2023. This shows that more and more people are betting larger amounts.

Gaming Authority intervenes in violations

With the growth of the gambling market comes more supervision. The Gaming Authority (Ksa) keeps a close eye on whether providers comply with the rules, especially when it comes to protecting players from gambling addiction and problematic gambling behavior. In 2024, the Ksa issued no fewer than 63 sanction decisions.

The highest fine ever was imposed in February 2024 on Gammix Limited, a company that was active on the Dutch market without a license. The fine? No less than €20 million. BetCity also received a hefty fine of €3 million for not properly checking customers and transactions, which increased the risk of money laundering or terrorist financing. In addition, five other parties together received more than €26 million in fines for offering online games of chance without a license. These fines were increased due to aggravating circumstances, such as ignoring rules on age verification.

Political discussion about further regulation

The online gambling market is also being closely monitored in political The Hague. On April 16, 2024, the House of Representatives voted on a number of motions calling for a total ban on online gambling advertisements, and even a ban on risky games such as online slot machines.

However, within the current coalition of PVV, VVD, NSC and BBB, there is no agreement on a complete ban on online gambling. Parties such as the PVV, VVD and BBB warn that such a ban would return the market to the situation before October 1, 2021, when illegal providers were in charge. They therefore advocate stricter rules, but not a total ban. Only NSC advocates a ban on gambling advertisements and certain forms of online gambling.

New rules in the making

Despite the fact that a total ban on online gambling does not seem to be coming, the rules are being tightened up. For example, ‘untargeted advertising’ on television, radio and in magazines has been prohibited since July 1, 2023. Sponsorship of events by gambling companies will also be prohibited from 1 July 2024, and all sponsorship by these companies will no longer be permitted from 2025.

This 1 October 2024, the rules are tightened even further with the introduction of new limits on how much players can bet. Providers will also be required to actively warn players about the risks of their gambling behavior. In addition, gambling companies will be required to check whether players can bear the financial consequences of their gambling behavior, especially if they bet more than €700 per month, or more than €300 if they are under 24 years of age.

Outlook for the online gambling market

For the time being, there does not seem to be a total ban on online gambling or risky games such as online slot machines. The market continues to grow, but is under strict supervision. The focus is now mainly on protecting players and further tightening the rules, such as the advertising ban and measures to combat gambling addiction.

In 2025, the gambling tax will increase significantly from 30.5% to 34.2%. In 2026, the tax will increase further to 37.8%. A measure that will undoubtedly lead to a thinning out of the market. It is feared that this will cause many operators to drop out and leave the Netherlands.