• The Netherlands’ gambling regulator, the KSA, has launched a new five-year, €21 million programme to research and prevent gambling addiction.
• The initiative comes as the Dutch regulated market faces a crisis, with industry figures reporting that 51% of all online gambling revenue is now flowing to the illegal black market.
• Critics argue that the government’s own policies-including a gambling tax set to approach 38% and strict, low deposit limits-are the primary cause of this poor channelisation.
• The Netherlands Online Gambling Association (NOGA) has labelled the situation “the Dutch disaster,” warning of “death by taxes.”
• The new prevention plan highlights a deep policy paradox, with the government spending millions to fix a problem that its own restrictive fiscal and regulatory policies are allegedly making worse.

The Dutch gambling authority, Kansspelautoriteit (KSA), has unveiled a new €21 million research programme aimed at strengthening the prevention and treatment of gambling addiction in the Netherlands. The five-year plan, developed with public health organisation ZonMw, will be funded by levies on licensed gambling operators.

“Player protection is an important priority for the KSA,” said the regulator’s chair, Michel Groothuizen. “By continuing this programme, we are joining forces to gather more necessary knowledge on this subject, so that we can prevent gambling harm as much as possible.”

The ‘Dutch Disaster’: A Thriving Black Market

However, this new focus on prevention comes at a time when the country’s entire regulatory model is under intense fire for failing in its primary objective: channelling players into a safe, legal environment. Industry experts have labelled the situation “the Dutch disaster,” pointing to official figures that show only 49% of online gambling revenue in the Netherlands goes to licensed operators.

This means the majority of the market ( 51%) is now controlled by the illegal, unregulated black market, where none of the country’s player protection measures apply. “ Regulation isn’t for the benefit of operators. It’s for protecting consumers - and failing to protect 50% is a failure,” stated Pontus Lindwall, CEO of Betsson.

The Alleged Cause: A Hostile Regulatory Regime

Critics place the blame for this massive market failure squarely on the government’s own policies, which they argue have made the legal market uncompetitive and unattractive to consumers. The two primary issues cited are:

• Punitive Taxes: The gambling tax rate has been repeatedly increased and is expected to hit nearly 38% in 2025.
• Strict Limits: The market has some of the most restrictive mandatory deposit limits in Europe, capped at €350 per month for adults and just €150 for young adults.

Peter-Paul de Goeij, founder of NOGA, has warned of “death by taxes” and stated bluntly that the “deposit limits have triggered the migration to illegal markets.” The financial strain on legal operators is so severe that even the state-owned Holland Casino recently reported a €10.4 million loss, with its own auditor raising “serious doubts about [its] future.”

A Policy Paradox

The new €21 million prevention plan highlights a deep and damaging policy paradox at the heart of the Dutch model. On one hand, the government is spending millions to study and treat the symptoms of gambling harm. On the other, its own fiscal and regulatory policies are actively driving players away from the protected legal environment and into an enormous black market where harm is far more likely to occur. As de Goeij concluded, “Gambling regulation, more than any other regulation, is a balancing act.” For now, it appears the Netherlands has lost its balance.