Massive growth of online gambling market leveling off
$6,000 Welcome Bonus
The explosive growth of the online gambling market since its legalization 2.5 years ago is leveling off. Over the whole of 2023, online gambling providers earned almost 1.4 billion euros gross, 28 percent more than a year earlier. However, in the second half of 2023, revenues only increased by 1 percent compared to the first half of the year, according to figures from the Gambling Authority.
The online gambling market in the Netherlands exploded after the Dutch government legalized it in October 2021. Now, the Dutch market is growing less strongly than in comparable countries, the Gambling Authority said.
The regulator did not explain the stagnating growth, but a spokesperson told NOS it may have to do with the stricter advertising rules implemented on 1 July 2023. Since then, gambling companies have been banned from advertising on the radio, television, magazines, and outdoor areas.
Strikingly, the sector’s total advertising spending did not decrease after the partial ban. According to the Gambling Authority spokesperson, online gambling providers mainly shifted the released budget to other areas. They now sponsor more television and radio programs, for example.
The sector will also face tighter rules in other areas later this year. There will be a monthly limit of 700 euros per player per provider to better protect online gamblers against the risks of addiction and large losses. For young people aged 18 to 24, the limit is 350 euros.
The Gambling Authority estimates that over 725,000 players gambled online at legal providers through 1.1 million different accounts in the second half of 2023. That amounts to 5 percent of the adult population. Almost 450,000 Netherlands residents gamble online every month. Casino games like blackjack and roulette are the most popular.
Young adults gamble more than older people. Young adults make up 9.5 percent of the population but account for 22 percent of online gambling accounts. However, they tend to lose less than older people. On average, online gamblers lose almost 1,000 euros every six months.
The Gambling Authority said it was too early to say whether the legalization of online gambling is resulting in more gambling addictions. It often takes years for players to seek help. But it is clear that the number of players requesting a “gambling freeze” is on the rise. Anyone who registers in the Cruks register can’t gamble anywhere - online or in a physical casino - for six months. Over 66,000 people are currently on the Cruks register.
