The latest annual report for 2024 released by the Dutch gambling regulatory authority Kansspelautoriteit (KSA) shows a complex development trend in the gambling industry following the implementation of deposit limit policies.
The report data reveals profound changes in market structure under policy regulation, along with the ensuing opportunities and challenges.
Market Performance Under Policy Regulation
For the entire year of 2024, the total revenue (GGR) of the legal gambling market reached 1.47 billion euros (approximately 1.58 billion US dollars), a 6% increase from the previous year. However, a detailed analysis of the quarterly data shows that the GGR in the second half of the year was only 697 million euros, a significant 10% decrease from the first half. This change is closely related to the player protection measures that took effect in October 2024, especially the implementation of the deposit limit system.
Deposit limit policy stipulates:
Ordinary players have a net deposit ceiling of 700 euros per month (approximately 777 US dollars)
The limit for young players aged 18-25 is reduced to 300 euros
Players can apply for a higher limit by providing proof of sustainable high income
Changes and Impacts on Market Structure
It is noteworthy that while the GGR decreased, the number of active accounts grew from 1.1 million to 1.19 million, an increase of 8.2%. Currently, there are about 788,000 active players, accounting for 5.4% of the adult population. This data indicates that the policy has been effective in expanding the player base, but it has also led to a transformation in revenue structure.
The change in channelization rate is particularly significant:
Traditional calculation methods show an online channelization rate of 91%
New assessment methods (based on market value) show 58% in the first half of the year, dropping to 50% in the second half
About 50% of the market funds flow to unlicensed operators
Player Behavior and Market Segmentation
After the implementation of the policy, player behavior showed clear differentiation:
The number of high-value players (single loss exceeding 1000 euros) decreased
The proportion of low-value players (loss below 1000 euros) increased
Heavy players may shift to illegal platforms, while amateur players mostly stay on legal channels
Regarding market revenue composition:
Online casino games account for 75% of total revenue
Sports betting is highly volatile, significantly influenced by events
After the policy implementation, sports betting saw the smallest decline
Policy Effectiveness Assessment and Future Outlook
The KSA report points out that the deposit limit policy has effectively reduced excessive gambling behavior on legal platforms, especially among young players. However, the shift of high-value players to illegal channels also presents new regulatory challenges. This "funnel effect" indicates that a more refined balance needs to be sought between protecting players and maintaining healthy market development.
Future regulation may need to:
Intensify efforts to crack down on illegal operators
Optimize the differentiated settings of deposit limits
Improve player identity verification and risk assessment systems
Promote industry technological innovation to meet regulatory requirements
This report provides a valuable reference case for global gambling regulation, demonstrating how policy intervention can reshape market patterns and the complex chain reactions that follow.
The Dutch experience shows that effective player protection needs to balance regulatory intensity with market vitality.
