[ad_1]
The Dutch licensed gambling market is recognized for its strict rules and monitoring. While robust, the regulations are not overly restrictive, which enables the country to channel more players toward the legal sector.
Land-Based Gambling Sector Boosts GGR
Newly released data from the country’s gambling regulator, Kansspelautoriteit (KSA), points to the growth of the gambling sector in 2023. Statistical data released Thursday confirms that the gross gaming revenue (GGR), reported by legal gambling operators as of 2023 hit €4 billion ($4.38 billion).
A comparison to 2022, when GGR halted at €3.3 billion ($3.61 billion) shows that last year, a growth of more than 21% was recorded. Per the Dutch Gambling Authority, the increase in year-over-year revenue helped the sector nearly reach the levels before the COVID-19 pandemic from 2019.
The exceptional growth comes after 2023 was the first full year without any COVID-related restrictions. This enabled the land-based casino sector to grow by 19% year-over-year when compared to 2022. Despite the strong result in 2023, brick-and-mortar casinos still couldn’t reach the result from 2019.
A breakdown of the total reported GGR in 2023 shows that the land-based casino sector which includes table games and slot machines, was responsible for the lion’s share of the revenue of 33%. The second most popular gambling activity with 30% share of the revenue was lottery. On the other hand, the share of sports betting was only 9%.
According to KSA’s estimates, approximately 5.4% of the adult Dutch population engaged in online gambling in the first half of this year. The regulatory watchdog explained that an overwhelming majority or 95% of the players used the services of licensed gambling operators. This marks an exceptional result, considering the country’s targeted 80% channelization rate.
Channelization May Be Slightly Lower Because of the Black Market
KSA’s chairman, Michel Groothuizen, commented on the recently released data, addressing key challenges regarding the Dutch gambling market. Focusing on the reported GGR, the executive acknowledged the unquestionable growth of the licensed gambling sector. Despite the growth, he said that the market isn’t moving that fast.
Groothuizen also pointed to the reported channelization rate of 95% which was “far above the initial target.” He explained: “That is a percentage to be somewhat proud of, but that we also owe in part to the visibility of licensed parties.”
However, Groothuizen explained that the amount of money that circulated within the legal sector, when compared to the illegal vertical, suggested that the market channelization rate is likely lower, at around 87%. This is in contrast to the reported 95% channelization rate. “This means that those who play illegally often spend more money,” added the executive, explaining that at the same time, the Dutch market remains attractive for bad actors.
KSA’s chairman explained that draconian regulations may further widen this gap, resulting in more money flowing to illegal, unregulated operators. At the same time, Groothuizen addressed the calls about a blanket ban on gambling advertising, explaining that such enforcement may have negative consequences. As an example, the chairman pointed to countries neighboring the Netherlands where gambling advertisement bans saw a rapid decrease in channelization rates.
[ad_2]
Source link