Illicit Gambling Gains Ground in Netherlands, Despite Decrease in Players
Dutch professional organizations caution against unlawful betting activities
Reports indicate that unlawful gambling operators in the Netherlands are witnessing an increase in revenues, despite a decline in the number of active players. Major gambling associations have responded to this trend with warnings and suggestions to improve the situation. Although fewer players are participating in the illegal market, those who continue to gamble are reportedly spending more than before. Approximately 95% of all Dutch gamblers currently patronize legal providers. In 2023, this number was 90%. However, when it comes to gross gaming revenue, the figures for illegal providers still look better: an estimated 13% this year, compared to 10% in 2023.
Helma Lodders, chair of the Licensed Dutch Online Gambling Providers (VNLOK), and Eric Konings, CEO of the Dutch Online Gambling Association (NOGA), issued a joint statement expressing concern over this development, especially its potential impact on vulnerable groups. They underscored the necessity of enhancing surveillance in this regard.
While it's encouraging that many gamblers can find legal alternatives, it's worrying that those who opt for the illegal offer tend to spend more money. This raises questions about our ability to adequately safeguard at-risk groups such as minors, young adults, and problem gamblers. We know that the allure of illegal gambling sites is particularly strong for these groups. Recent investigations have revealed that minors can easily gamble at illegal sites. These groups may be disappearing from the statistics, yet they require special protection.-Joint statement by Helma Lodders and Eric Konings, chair of VNLOK and CEO of NOGA*
Fewer Engagements, More Illicit Gambling
Lodders and Konings also pointed out that the number of consultations with gamblers has decreased, which could suggest that fewer gamblers are struggling with gambling issues. However, it could also mean that these struggling gamblers are turning to the black market, where they would be unprotected from harmful behavior. Both parties advocate for simplifying the registration process for the Central Self-Exclusion Register (Cruks) to make it more appealing to players.
Battling Illicit Gambling: Challenges and Solutions
The struggle against illicit gambling is proving to be a challenge not only in the Netherlands but also in other European countries. Despite significant investments in research and proposed measures against black-market providers, few tangible results have been achieved. In Germany, too, a broader spread and disadvantage for legal providers are being warned against.
-Andy Meindl, President of the Bavarian Automaten-Verband, emphasized that those who follow the law should not systematically suffer while illegal providers grow bolder.
Shutting down online casinos in Switzerland is akin to Don Quixote's battle against windmills. Since the blocking process takes longer than the reopening of an illegal casino and operators are usually based abroad, the chances of success are minimal in this Alpine country.
Why Do Players Prefer Illicit Gambling Providers?
- Attractive Bonuses and Promotions: Illicit providers often offer tempting bonus offers, higher stakes, or lower payout requirements. While these promotions may appear attractive initially, they pose significant risks. For instance, such bonuses are restricted in Germany by the State Treaty on Gambling in Germany.
- Anonymity and Data Protection: Many players opt for illegal platforms due to the anonymity they offer. Such platforms often do not require extensive identification, making it easy for banned or restricted players to continue gambling.
- Fewer Restrictions: Illegal sites typically have fewer restrictions, whether concerning stake limits or the types of games, which can be appealing to players who feel constrained by legal regulations.
- Easier Access for Vulnerable Groups: Particularly vulnerable groups such as minors, young adults, or problem gamblers often find it easier to access illegal platforms, as security measures and age verifications are weaker.
- Exploitation of Loopholes: Since many illegal providers operate abroad, they often exploit weaknesses in international law enforcement.
- Lack of Protective Mechanisms: Unlike legal providers, illegal platforms often lack protective mechanisms such as limits or self-exclusion, posing a risk to people with problematic gambling behavior.
According to the University of Lucerne, six-month player bans are effective against gambling addiction, which is often associated with the use of illegal offers. However, a study by the National Centre for Social Research (NatCen) in the UK found that the ban on using credit cards for online gambling had limited success.
In the context of the challenges faced in battling illicit gambling, especially in Germany, Andy Meindl, President of the Bavarian Automaten-Verband, expressed concern about illegal online casinos gaining an advantage over legal providers. Despite the State Treaty on Gambling in Germany restricting attractive bonuses and promotions offered by illegal providers, some players continue to prefer the anonymity and fewer restrictions provided by these platforms.
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