Ministry admits: figures on illegal gambling remain a mystery
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20 Nov 2024 •
Reading time: 3 minutes In mid-November, the Ministry of Justice and Security in the Netherlands provided answers to questions from the standing committee on the 2025 budget. An important topic was the growth of the illegal gambling market and the number of gambling addicts in the Netherlands.
The ministry acknowledged that the size of the illegal gambling market remains an estimate. Precise figures on gambling addiction are also not known, which makes it difficult to fully understand the situation.
The questions were asked after the Members of Parliament had submitted hundreds of questions by the end of October. Nine of these questions were specifically about (online) gambling. Topics such as the growing turnover of illegal gambling providers and the effect of European collaborations were discussed in detail.
Growing turnover of illegal gambling market remains uncertain
The ministry indicated that it is not possible to determine whether the turnover of illegal gambling providers has grown or fallen in the past year. The Gaming Authority (Ksa) monitors the situation, but works with estimates. In its 2024 autumn report, the Ksa stated that approximately 87% of the gross gaming result (GSR) is generated via legal providers.
This percentage is expected to remain stable until 2025, but factors such as the increase in gambling tax and stricter gaming limits may have an impact.
The Ksa is working with the Gaming Regulators European Forum (Gref) to tackle illegal gambling. Through this partnership, European regulators exchange knowledge and strategies, such as effective methods to combat illegal activities.
Increase in gambling addiction remains unclear
The number of gambling addicts was also discussed. The ministry stated that exact figures are not available. However, a recent report by LADIS showed that the number of treatments for gambling addiction had increased by 15.3% in 2023 compared to 2022. Young people under the age of 25 accounted for 17% of these treated cases. This percentage is consistent with previous years.
The Loket Kansspel, which provides support for gambling problems, has conducted a total of 1,584 support conversations up to October 2024. This number provides insight into the demand for help, but not into the total number of gambling addicts. The ministry emphasized that the Loket Kansspel is not a registration system, but has a referral function.
Increase in gambling tax and resistance
Another hot topic was the increase in gambling tax from 30.5% to 37.8%. The ministry expects to raise an additional €202 million annually with this. Further increases were considered unrealistic due to a possible decrease in revenue per percentage point increase. Various organizations, including charity lotteries and casino operators, sent letters to express their concerns about the tax increase.
Fight against illegal gambling and better enforcement
The Ksa also shared information about enforcement. Up to October 2024, the supervisory authority has imposed 22 fines and warnings, most of which were aimed at illegal providers. The ministry emphasized that warnings are not always registered or published. A letter is expected in December 2024 with plans for more effective enforcement, including additional powers for the Ksa.
The ministry indicated that improvements in the Cruks system, such as stricter rules for deregistration, will be included in a proposal for legislative changes. This proposal follows the evaluation of the Remote Gambling Act.