The Dutch Gambling Authority has called for stronger European cooperation against illegal gambling, arguing that the Netherlands lacks the scale to confront internationally operating gambling businesses and the infrastructure supporting them on its own.

NEXT.io reported on the warning on September 14, citing a September 11 blog post published by the Kansspelautoriteit (KSA), in which chairman Michel Groothuizen reflected on the Dutch parliament’s annual gambling committee debate. Groothuizen welcomed the attention lawmakers gave to illegal gambling, while saying the discussion placed too little emphasis on cross-border enforcement.

According to the KSA chairman, around half of every euro gambled by Dutch consumers now goes to the illegal market. He estimated that unlicensed operators deprive the Netherlands of more than €500 million in tax revenue each year.

Groothuizen also described the scale of the global illegal gambling sector as an obstacle for national regulators. He said its worldwide turnover exceeds the GDP of every country apart from the US and China.

KSA Seeks Greater European Enforcement Capacity

The KSA currently works to reduce the visibility of illegal gambling websites and disrupt the systems they rely on to operate. That includes efforts involving payment channels and online platforms.

“We are calling on major technology companies to take responsibility for not making their online platforms and search engines available for this kind of large-scale criminal activity,” Groothuizen said. “We are also in discussions with the financial sector.

“But compared with these globally operating technology and financial companies, the Netherlands is far too small. Inevitably, we need Europe to persuade such companies to work with us in the fight against illegal gambling.”

Groothuizen argued that national regulation cannot provide sufficient enforcement against operators whose activities, corporate structures and financial arrangements extend across borders.

“In my view, it is naive to cling to the idea that a well-regulated legal national market and a national regulator are sufficient to tackle this problem. We are fighting a global network of ruthless criminal organisations with dedicated community police officers, whereas we should actually be deploying an international investigative service.”

The KSA has issued fines reaching tens of millions of euros against illegal gambling companies. However, the regulator has acknowledged difficulties collecting those penalties when operators repeatedly change corporate identities or establish themselves in jurisdictions where Dutch authorities have limited enforcement reach.

Groothuizen said the regulator consequently places increasing emphasis on disrupting the infrastructure that allows those businesses to reach Dutch consumers.

“We are holding the major tech companies accountable for not making their online platforms and search engines available to this type of large-scale crime. We are also in dialogue with the financial sector. If you cannot place bets or cash out winnings, the fun of gambling quickly wears off,” he said.

Concerns Focus on Vulnerable and Self-Excluded Players

The KSA chairman said the effects of illegal gambling extend beyond lost tax revenue. He pointed to the absence of player-protection obligations among unlicensed operators and their efforts to reach consumers who have already experienced gambling-related problems.

One recent case involved a website carrying gambling advertising while presenting itself as 113.nl, the Dutch suicide prevention service.

“These parties not only disregard national laws and regulations but also take no responsibility whatsoever for their players,” Groothuizen said.

“The majority of illegal gambling providers actively target people who already have gambling problems and have registered in the Cruks exclusion register. Their message? Bypass Gokstop, keep gambling with us.”

Cruks is the Netherlands’ gambling self-exclusion register. Groothuizen said illegal operators specifically market their services to people registered with the system.

The issue formed part of the parliamentary gambling debate that prompted his September 11 KSA blog. Lawmakers discussed stronger enforcement tools, including a mechanism that could allow illegal gambling websites to be blocked.

The State Secretary also indicated an interest in examining whether authorities could use false identities during investigations into illegal gambling operations.

Other possible changes discussed during the debate included raising the minimum gambling age to 21 and limiting the number of licence holders. An advertising ban and the idea of a central login portal for regulated operators were also raised.

Wider Concerns Over Cross-Border Illegal Gambling

Groothuizen’s comments come amid broader scrutiny of illegal gambling and its links to financial crime.

The Financial Action Task Force recently examined gambling-related risks across more than 80 jurisdictions. FATF found that illegal gambling markets “rival or even exceed the size of legal gambling markets” in a number of jurisdictions.

FATF President Giles Thomson also warned about the financial crime exposure associated with insufficient controls.

“Without robust safeguards, these sectors can be attractive gateways for fraudsters, professional money launderers, and organized criminal networks,” Thomson said.

Europe’s illegal gambling market generates approximately €12 billion in net revenue.

For Groothuizen, the international structure of the illegal sector makes European coordination a central part of any effective response. He said operators already work across borders through their financial arrangements and online advertising, while regulators remain constrained by national authority.

“This international capacity to act was barely discussed during the debate, and the lack of attention from parliament almost certainly means that the department will also devote only limited attention to European rules, squeezed in among all the other priorities set by parliament,” he said. “I think that is a shame, because illegal operators have long operated across borders.

“Making a real impact requires the capacity to act at European level. That understanding does not yet appear to be widespread in the Dutch House of Representatives.”