License features and advantages in iGaming market in the Netherlands

The online gambling market in the Netherlands can for sure be called a luring one, with its overall revenue of €1.39 billion in 2023, according to a KSA report, the country's regulator.

In the article EvenBet Gaming, a developer of online gaming software and solutions who has obtained certification in the Netherlands, will have a look at the regulatory challenges of the region as well as the advantages of casino traffic in the Netherlands.

Why is the gambling industry in the Netherlands so attractive?

Several reasons make the online casino industry in the Netherlands very attractive and prove its profitability, according to the report by KSA Monitoring.

• Impressive GGR. It reached €1.388 billion in 2024 – a remarkable 28% increase from €1.08 billion just two years ago.
• Growing number of players. The number of active young Gamblers in the region has grown from 21% in 2022 to 30% in 2023 according to NOGA, showing huge interest among Dutch adults.
• Most adults play casino games against the house, such as video slots and live casino games, followed by peer-to-peer games such as online bingo and poker. Sports betting and horse race betting are falling a bit behind.
• Young adults aged 18-23 prevail. Even though this group only makes up 10% of the population, it had 20% of active accounts at the end of 2023.
• Responsible Gambling growth. The number of players enrolled in Cruks, the self-exclusion register, has increased to over 38,000 in April 2023, indicating a growing awareness of responsible gambling practices.

Making a small retrospective to 2023 will prove that Gambling in the Netherlands only evolves, according to stats taken from the KSA report.

Main Gambling stats in the Netherlands for 2023:

• The number of active clients’ accounts reached 1.1 million;
• The monthly number of active players was 448,000;
• At least 5% of the Dutch population engaged in Gambling activities in the final six months of 2023;
• Dutch players are quite responsible - 90% of them gambled on licensed online casino sites.

The most popular casino game in the Netherlands is poker. There’s also a significant number of active players given the country's high internet penetration​.

Is online Gambling legal in the Netherlands?

In short, yes. Though it’s not that simple - there are certain rules that must be followed by the websites that operate in the region.

Obviously, a casino needs to receive a license from Dutch regulatory Gambling organizations. That won’t be a very tough task if a casino is legitimate and operates under the existing laws.

As in most countries, it’s prohibited to target players that do not fall into the legal age for Gambling, it’s 18 in the region. Also, it’s important not to make use of problematic gambling behavior, not to cause addiction among most of the players.

How is Gambling regulated in the Netherlands?

In April 2021, the regulatory Gambling body named the Dutch Gambling Authority, or KSA, launched the Remote Gambling Act. It allows iGaming operators who obtain a license to offer online gambling services such as poker, betting and other activities legally within the country.

The law allows for both domestic and international operators to apply for licenses to offer online gambling services to Dutch consumers. This licensing system is designed to bring operators into compliance with Dutch regulations, ensuring that they meet certain standards related to player protection, anti-money laundering measures, and responsible gambling practices.

It requires licensed operators to implement various responsible gambling measures, such as offering self-exclusion options, setting deposit limits, and providing access to resources for problem gambling support. The law also mandates that operators contribute to a gambling addiction prevention fund, which is intended to support initiatives aimed at preventing and addressing problem gambling.

Games that are regulated by the KOA law:

• Poker
• Bingo
• Slot machines
• Live casino games such as roulette, blackjack or baccarat
• Sports betting
• Lotteries

The main aim of the law was to make at least 80% of Gamblers to use only licensed sites, and this goal actually worked out, it’s claimed that 90% of people gamble responsibly, while 98% of new players register only on regulated casinos.

What are the legitimate casino operators in the Netherlands?

The Dutch iGaming market has experienced a surge in activity with the entry of numerous Dutch, Belgian, and international gaming companies. Notably, Holland Casino, a former state monopoly and prominent land-based establishment, secured a license early on.

Following suit, local operator Jack's Casino also obtained a license, while Toto expanded its offerings to include an online sportsbook alongside its traditional toto bets in the Netherlands.

Belgian operators Bingoal and Circus, who already had a Dutch customer base prior to regulation changes, swiftly leveraged their position with new licenses.

International brands like bet365, Kansino (operated by Play North Limited), 777.nl, and GGPoker were among the initial recipients of licenses as well. Additionally, online casino license holders such as Betcity.nl, 711, Flash Casino, and French operator Zbet have further enriched the diverse landscape of the Dutch iGaming market.

The entry of new operators into the market in 2024 is also predicted, including Hommerson, JOI 2 Limited, and brands of Rootz Limited launching their Dutch versions.

Overall, the Dutch online gambling market is evolving as expected, with a focus on responsible gambling practices, consumer protection, and regulatory oversight to ensure a safe and sustainable industry.

Are there any challenges in the Netherlands Gambling market?

Despite the promising nature of the Dutch iGaming market, the authorities consider some amendments to the KOA act.

The Dutch Parliament recently passed key amendments to the Remote Gambling Act (KOA Act) proposed by Socialist Party MP Michiel Van Nispen. One significant change is the ban on all gambling advertising. Van Nispen also succeeded in securing a ban on high-risk online gaming, particularly targeting online slots. The proposals were backed by several parties advocating for KOA market reform.

These developments signal a significant shift towards stricter regulations in the Dutch iGaming sector. Minister of Legal Protection Frank Weerwind is tasked with implementing these changes, including laws to ban gambling advertising and online slots. The government's KOA reform program aims to enhance player protection, with measures such as mandatory financial risk checks and loss limits for young customers.

Despite these efforts, challenges remain, as the CDA party is considering a bill to abolish the KOA Act. The evolving landscape of the Dutch iGaming market reflects ongoing efforts to address concerns related to problem gambling and industry practices.

What’s the future of online Gambling in the Netherlands?

Based on the research of Ipsos, there are several takeaways on the future of online iGaming activities in the Netherlands.

• The survey revealed that the percentage of problem players among Dutch gamblers decreased from 42% in 2023 to 39%. Problem players were defined as those who lied about their gambling habits or felt the urge to bet more.
• There is a concern that Dutch gamblers may switch to illegal gambling sites if their legal options are restricted. At-risk players showed a higher inclination to switch to illegal providers if certain restrictions, such as proof of income or monetary limits, were imposed.
• Despite a high channelization rate of 95%, indicating that most Dutch gamblers use legal gambling sites, around 90,000 people still gamble at illegal casinos. This poses a challenge in reducing the illegal supply and protecting at-risk players.
• The survey highlighted an increase in online gambling participation among Dutch adults, with one in six people engaging in online gambling in 2024, up from 13% in 2023 and 11% in 2022.
• Recommendations from Ipsos include identifying and addressing potentially risky gaming behavior to prevent addiction and ensuring compliance with online advertising regulations by gambling providers.
• Stricter measures may be needed to prevent problem gambling and protect vulnerable players, especially as the industry faces increasing regulatory scrutiny and potential changes in Dutch gambling policy.
• Overall, the findings of the survey indicate the importance of continuous monitoring, regulation, and responsible gambling practices to ensure a safe and sustainable online gambling environment in the Netherlands.

Make sure to contact EvenBet Gaming to learn more about their products and services and collaborate with a licensed Dutch iGaming developer!

Image credit: Casino Guru News