Dutch gambling market grows 21% in 2023, despite concerns over illegal activity

The Netherlands saw its gambling revenue rise by 21.2% in 2023, reaching €4 billion ($4.36 billion), according to the country’s regulator, Kansspelautoriteit (KSA). However, concerns persist about illegal gambling, as new data suggests that players are spending significantly more on unauthorized sites.

While the KSA estimates the country’s channelization rate — the proportion of players using legal platforms — at 95%, data on player spending indicates a lower figure of 87%, as many gamblers turn to illegal operators. 

KSA chairman Michel Groothuizen noted that “those who play illegally often spend more money”, making the Netherlands an attractive target for illicit gambling operations, a trend he described as an “undesirable situation.”

Despite these concerns, the Dutch gambling market saw significant growth. Online casino revenue accounted for €1.09 billion, or 27.25% of the gross gaming revenue (GGR), with a 34% increase in online earnings. Land-based casinos contributed €250 million, up 19% from the previous year, though still below pre-pandemic levels.

The KSA report also highlighted spending patterns, with Dutch players averaging €272 per capita, lower than the European Union average of €339. In comparison, the Netherlands ranked above Ireland but behind Finland, France, and Denmark.

Sports betting, while still a small segment of the market, saw growth of 9.7% in 2023, reaching €349 million, with 83% of betting revenue generated online.

Looking ahead, the Dutch gambling sector faces a significant tax hike. Starting in January 2026, the tax rate on GGR will increase from 30.5% to 37.8%, a move met with opposition from operators. In 2023, the industry paid €117 million in gambling taxes, alongside €698 million in charity funding.

Groothuizen said the data gathered this year would help shape future regulation. “We can see the effects of policy in the figures... I am curious to see what effects we will see in the next monitoring report in the spring,” he added.