The Netherlands’ regulated online gambling sector has faced stagnation, according to the latest spring 2026 report from the Netherlands Gaming Authority (KSA). While gross gaming revenue (GGR) for the legal market remained stable at €602 million during the second half of 2025, this marks a stark contrast to the 18% decline observed over the past year. The lack of growth in the legal market stands in sharp contrast to the growth seen in other European markets, where online gambling has thrived.

Declining Numbers: Fewer Players, More Accounts

Despite the steady GGR, the number of active players in the legal market has decreased. In the second half of 2025, approximately 810,000 players engaged with licensed operators, a decrease from 850,000 in the first half. However, the total number of active accounts increased by nearly 100,000 during the same period. This suggests that players may be diversifying their gambling activities across multiple providers. This shift may be linked to the introduction of net deposit limits in October 2024, which capped how much players could bet per account without revealing financial details.

While the number of accounts has grown, the overall player base continues to shrink. The KSA noted that despite the growing number of accounts, players are spending less money overall due to tighter regulations on deposits and responsible gambling measures.

One of the most concerning developments in the KSA report is the significant increase in illegal gambling activity. While 94% of players were estimated to be using legal platforms in the first half of 2025, this figure fell to 91% in the second half. In comparison, the number of players using both legal and illegal services rose significantly. The illegal market, which had previously remained a small fraction of total gambling activity, is now rapidly expanding. It is estimated that 30,000 players were exclusively gambling on illegal platforms in the second half of 2025, a significant increase from the previous period.

A key factor contributing to the black market’s growth is the decline in channelization. In simple terms, less of the total gambling revenue is flowing through legal operators. According to NEXT.io, in the second half of 2025, only 53% of the total gambling money went to licensed platforms, down from 56% in the first half of the year. This shift is attributed to the high losses players face in the unregulated market, where consumer protections are minimal or non-existent.

Impact of Regulatory Changes and Deposit Limits

The decline in revenue from the legal market is largely attributed to changes in the regulatory framework introduced in October 2024. The introduction of net deposit limits has restricted how much players can bet per account, impacting the overall growth of the sector. Although the legal market remains stable in terms of player accounts, the average losses per player increased slightly in the second half of 2025. The average loss per player rose from €117 in early 2025 to €124 by the end of the year.

The KSA’s report suggests that the strict rules aimed at improving consumer protection, including deposit limits and monitoring, have contributed to these changes. However, the crackdown on illegal gambling, which remains largely unregulated, has continued to grow, with many players seeking less secure options outside the legal framework.

Another area of concern highlighted in the KSA report is the high engagement of young adults in online gambling. Individuals aged 18 to 24 account for 22% of all gambling accounts in the Netherlands, despite making up only 9.3% of the adult population. While young adults tend to lose less money per account than older players, their gambling behavior remains a source of concern for regulators. The KSA has highlighted the importance of protecting young and vulnerable players, whose brains are still developing and who are more prone to impulsive decisions.

KSA Chairman Michel Groothuizen emphasized the need for a comprehensive approach to address this issue, stating that while there is enthusiasm in politics to implement a single gambling limit across providers, such a move would not stop players from turning to illegal gambling. He stressed that a balance must be struck between ensuring responsible gambling in the legal market while cracking down on unregulated platforms.

The KSA’s report paints a mixed picture for the Dutch gambling market. While the legal sector remains stable, the growing illegal market poses a significant challenge. The regulator faces the difficult task of balancing player protection with promoting legal gambling options. The ongoing rise in illegal gambling underscores the need for stronger enforcement and continued consumer education. As the legal market adapts to stricter regulations, it remains to be seen how the unlicensed market will evolve in the coming years.