KSA reports Dutch online gambling market is growing

According to the Dutch gambling regulator Kansspelautoriteit or KSA, about 437,000 out of a population of about 17 million people in the Netherlands are gambling on the Internet. The report by KSA showed that the profits in online gambling by the Dutch thereby rose 7.6 percent, which is a significant rise since 2003.

According to the KSA report, this rise in the online gambling market is about 13 percent of the entire online gambling market, which is a bit smaller than the percentage of online gamblers in Europe. The report revealed that male gamblers are the ones most likely to go online to play than female gamblers, and that the top game women liked is bingo. Some reports also show a large amount of profits coming from gambling via sports event betting.

Dutch Gamblers Spending More Online

Online gaming is not regulated in the Netherlands, and there have been severe postponements that have hindered the Remote Gaming Bill from being passed. However, the KSA still believes that profits from such interest in Internet gambling will rise to €296 million, which is an increase over €275 million in proceeds from gambling by the Dutch in 2014.

Even with this predicted increase in the profits from online gambling, the KSA report showed that most people in the Netherlands like going to a land based casino more so than doing their gambling at an Internet casino if you compare the results to other places in Europe.

Few Dutch Show Gambling Addictions

Despite this rise in online gambling by the Dutch population, the KSA report announced that 83 percent reported to be doing online gambling have not shown any indication of having a gambling addiction problem. Eleven percent were deemed at a possible risk of developing a gambling addiction and a little over five percent already showed this kind of addiction issue.

Regulation on online gambling expected in next few years

It is thought that regulation for online gambling such as the Remote Gaming Bill should pass by 2017. As long as this occurs, there are also reports of plans to allow about three quarters of the gambling market on the Internet to go to operators who are licensed in the Netherlands by the year 2020. The data from the KSA report indicates that online gamblers in the Netherland are 17 percent more likely to choose an online gambling website if they believe the site has authorization from the Dutch government.

The online gaming bill outlines a tax rate of 20 percent gross revenue tax that would be applied to these regulated online gaming operatives. This rate of tax has been greatly debated because the amount of taxes imposed on land based casinos is much higher at a rate of 29 percent gross revenue tax. However, some in the gaming business think the rate of 20 percent gross revenue tax is actually too high.

This is because they feel this high of a rate will discourage international gaming businesses from seeking licenses and/or wanting to operate lawfully in the Netherlands. For instance, the CEO of Unibet Henrik Tjärnström suggested a rate of only 10 percent gross revenue tax.

Dutch Gamblers Need Wide Range of Games to Be Interested

The State Secretary for Security and Justice in the Netherlands, Klaas Dijkhoff, said that players can find Internet alternatives online very easily, therefore any future proprietors will need to be willing to offer players a wide range of games to choose from in order to get players to generate the lawful offer.

They argue that a 20 percent gross tax rate will inspire the creation of a huge grey gambling market in the Netherlands, but that argument was dismissed in the KSA report, which indicated that as long as the gambling marketplace is in effect by 2017, that 76 percent of the profits gotten via Dutch gambling operators online would be from regulated channels by 2020.

Other Gambling Businesses Said to be Threatening to sue KSA

According to some news agencies, other gambling businesses have been planning to sue KSA due to the fact that it privately gave lottery licenses to Lotto and Postcode Loterij. The entities include Unibet, as well as Betfair, and also Betclic, and the European iGaming industry body, as well as some additional gambling operators. The reason for this is they say that the awarding of the licenses was done in violation of the rule against the government extending private payments.

So far more than 200 companies have been said to have expressed their interest in applying for online gambling licenses with the Netherlands online gambling regulator, the KSA.

However, the passing of the Remote Gaming Bill is still undergoing delays in the Dutch Parliament. Even so, Klaas Dijkhoff had previously said last April that it was “full speed ahead” for the passage of the Remote Gaming Bill and for the licensing of online gambling operators who were dependable and proper operators.

Dijkhoff also wrote a letter to the House of Representatives stressing his backing of the Remote Gaming Bill, which will help to modernize the Netherland’s out-of-date gambling rules.

Gambling businesses who break regulation rules to be fined

If an online gambling site is not licensed and authorized after the regulations are adopted, the KSA says that high fines will be charged. As of August 1st, they tripled the smallest fine for those companies charged with unauthorized online gambling activity, as well as raising the highest allowed fine charged for repeat offenders to €810k.

All in all, Dutch people wanting regulation and better control may not have to wait much longer, and in addition it appears that more of the Netherlands’ population are joining n the fun of online gaming.

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1 Comment

  1. If we discuss about the dutchmen, there are so many interesting issue. for example, the number of gambling addiction percentage is so low, and, The dutchmen also known of their low drugs addiction percentage, even they country legalize marijuana. So perhaps if they can loose the online gambling regulation, it will grow faster then ever without worrying about addiction issue, who knows.

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