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(AsiaGameHub) –   The Dutch gambling regulator, Kansspelautoriteit (KSA), has indicated that the nation’s unregulated gambling sector is continuing to expand.

In a recent monitoring report, KSA Chairman Michel Groothuizen noted that primary metrics—such as the volume of licensees, the number of active players, and total revenue within the legal market—have remained largely stable compared to the previous six-month period.

This plateau reflects the influence of regulatory changes implemented throughout 2024 and 2025, including higher gambling taxes, stricter advertising rules, and the introduction of deposit limits.

Despite the market stagnation, the KSA observed a continued decline in average player losses, which dropped to approximately €120 (£104) per month in the latter half of 2025—a decrease of more than 25% year-on-year.

However, the KSA expressed renewed concern regarding the scale of the black market. The proportion of gross gaming revenue (GGR) captured by licensed operators dipped from 56% at the start of 2025 to 53% by the second half of the year, indicating that nearly half of all gambling expenditure is now directed toward unlicensed platforms.

“Research indicates that the illegal market is expanding globally, a trend we are observing in other European nations as well,” Groothuizen stated.

“Technological advancements, including AI, and the rise of cryptocurrency gambling are contributing factors. In the Netherlands, this shift may also be linked to the measures we have implemented to enhance player protection at legal sites, such as the aforementioned deposit limits.

“While we did not initially observe that individual provider deposit limits were leading to the creation of multiple accounts, we are now seeing a slight rise in the number of accounts held per player.

“It is quite possible that the financial capacity checks triggered at certain thresholds are encouraging individuals to open additional legal accounts elsewhere to bypass these checks, or to migrate entirely to illegal platforms.”

As Groothuizen noted, the rise of the black market is not unique to the Netherlands. Regulators worldwide appear to be struggling to manage the surge in unlicensed operators within their respective jurisdictions.

For instance, a recent YieldSec study revealed that 62% of gambling activity in South Africa occurs on unlicensed sites. Sean Coleman, CEO of the South African Bookmakers’ Association (SABA), told SBC News that local regulatory bodies “lack the resources and expertise to effectively combat the illegal market.”

This sentiment is shared by many experts globally; a study commissioned by Flutter Entertainment highlighted how black market operators in the UK can function illegally with minimal consequences.

Researcher Alex Wood noted that addressing these operators from a legal perspective is “impossible” due to the complexities of cross-border enforcement.

The KSA’s future plans

Looking ahead, Dutch policymakers are considering a universal deposit limit to prevent players from migrating between licensed operators. While this could curb circumvention within the legal market, Groothuizen acknowledged it might also drive some users toward illegal alternatives.

The KSA reaffirmed its commitment to rigorous duty-of-care standards, citing ongoing concerns regarding high-risk gambling. Approximately 6% of the Dutch adult population engages in online gambling, and it has been noted that no other age demographic holds as many gambling accounts, proportionally, as 18-year-olds.

Groothuizen cautioned that relaxing player protection measures would be ill-advised, emphasizing that the safety of vulnerable users remains a primary objective.

Just last week, the KSA allocated additional funding to its Addiction Prevention Fund to combat problem gambling. While the regulator remains a prominent voice in global discussions regarding gambling harm and illicit activity, it is clear that it continues to face widespread challenges that extend well beyond the Netherlands.

Groothuizen concluded: “Strict adherence to the duty of care remains one of our top priorities for the legal market.

“It goes without saying that the illegal sector has no regard for the harm that gambling can cause.”