Dutch gaming authority Kansspelautoriteit (KSA) has sounded the alarm over channelisation dropping from 51% at the close of 2024 to 49% in the initial half of 2025. In its 2025 yearly report released on Tuesday it cautioned that the illicit market had surpassed the regulated sector regarding operator GGR.
Unregulated operators now represent the bulk of gambling expenditure in the Netherlands, with GGR from licensed providers mostly unchanged year-over-year in the latter half of 2025, at €602 million.
The adoption of stricter player protection measures such as deposit limits and an escalation in gambling tax rates implemented over the past couple of years has resulted in the decline in channelisation. This reduction indicates that nearly 50% of all gambling expenditure is migrating to unlicensed operators.
The authority enforced deposit ceilings of €700 for players above 24 and €300 for those between 18 and 24 in October last year. Initially intended to promote safer gambling habits, the enforced measures actually curbed legal player spending.
Despite the count of monthly player accounts hitting 1.38 million in H2/25, losses per account decreased and total legal revenue expansion halted. Although player engagement stayed strong, deposit caps and compliance requirements are restraining per-player outlays.
Channelisation declines as illicit expenditure surpasses
The KSA approximated the illicit online market at roughly €617 million in H1/25, marginally above the €600 million reported by licensed operators during the same timeframe.
Nevertheless, the authority further noted that channelisation, measured by player behavior, stayed elevated at around 94% throughout 2025 since most gamblers are still registered with licensed services, yet are progressively spending offshore or through illicit routes.
The KSA observed a 34% rise year-over-year in complaints about unlicensed gambling offers, increasing to 2,005 instances in 2025. In reply, it introduced a new coalition-driven project called Project Disconnect.
Michel Groothuizen, chairperson of the KSA, stated that the body would attempt to tackle illegal supply through a fresh and creative approach. The project intends to dismantle the infrastructure backing unregulated gambling operators rather than targeting each site individually.
Initial outcomes comprise the almost complete removal of paid search advertisements for illicit sites on Google since August 2025 and the removal of unauthorized .nl domains through registry SIDN. Leading game developers have also demonstrated commitments to restrict content from unregulated platforms after a B2B conference in November 2025.
Enforcement actions escalated in tandem with reforms
The KSA penalized five authorized operators a total of €8.6 million in 2025, mainly for breaches in care-of-duty responsibilities, after comprehensive investigations into instances of severe player losses. The body also levied four penalties, amounting to €31.2 million, against unlicensed operators during the reporting period.
However, the authority highlighted a legal limitation. Under existing legislation, penalties cannot surpass 10% of an operator’s worldwide GGR. Consequently, this has restricted the KSA’s capacity to fine offshore operators accordingly. The regulator is in talks with the Justice Ministry to modify the law.
The KSA additionally reported an €11.1 million budgetary shortfall for 2025. This was partially due to a €5.3 million deficit in gambling tax revenues, which is a direct outcome of the deposit caps it implemented to safeguard players.