Dutch trade body concerned over illegal market growth in KSA channelisation report
The KSA released its spring report on Monday, revealing H2 2024 gross gaming revenue (GGR) was 10% lower than in the first half of the year, with October’s implementation of new protection measures playing a key role in the drop.
Since 1 October, players have been prohibited from depositing more than €700 (£601.28/$796.24) in a single calendar month. The limit dropped to €300 for those aged between 18 and 25.
The combination of the new measures and a different methodology led the KSA to estimate the channelisation rate for legal operators, based on GGR, was 58% in H1 of 2024. This then dropped to 50% in the second half of the year.
But the average number of player accounts remained relatively stable, edging up to 1.19 million from 1.1 million six months prior. This, the KSA said, is due to higher-value players have switched their focus to illegal offerings. This is in order to bypass the deposit limits.
VNLOK observed “both positive and worrying developments” within the KSA’s report. The trade body expressed concerns over bettors turning to the black market facing insufficient levels of player protection.
Helma Lodders, VNLOK’s chair, said: “The fact that the turnover of the illegal market is growing so fast means that players who wager a lot of money are more likely to operate outside the regulated offering. That is worrying, because these players are more at risk of gambling problems.”
Players putting more money into illegal market
The measures the KSA introduced last year do seem to be having an effect, as the number of accounts with a loss exceeding €1,000 a month dropped from 4% to 1.2%. Meanwhile the average loss per player account decreased to €83 a month from €113.
But while VNLOK accepts this is a step in the right direction, it again questions where that money is going instead.
“The figures indicate that this group has partly switched to illegal supply,” Lodders added. “This shifts the problem instead of solving it. Monitoring and enforcement must therefore move along with the behaviour of players.”
Additionally, VNLOK is concerned over the prevalence of online gambling among young adults.
Despite making up just 9.4% of the adult population, they account for 22% of active accounts.
“Their [young adult’s] average loss per month is €42 lower than that of older players, but the high share shows the popularity of online gambling among this group,” VNLOK continued.
“VNLOK advocates continued attention for this target group and calls for close monitoring of the effects of new rules on young adults.”
The Dutch government in the process of reforming its gambling law and is preparing to present a new Remote Gambling Act to parliament by the end of the year.
State secretary for legal protection Teun Struycken in February proposed lowering the age limit for online slots to 21 to prevent younger adults for accessing “higher-risk” legal gambling activities.
But this has been met with some pushback from stakeholders concerned these players could instead turn to the black market.