Upcoming adjustments to gambling laws in the Netherlands might cause players to resort to illegal gambling activities.
The Netherlands Online Gambling Association (NOGA), representing the Dutch gambling industry, has raised concerns about potential adverse effects of changes in gambling regulations in the country. A recent survey conducted in collaboration with IPSOS reveals that planned modifications to the laws might reinforce the illegal gambling market.
Online Gambling Barometer: Survey Reveals Argumentative Findings
The annual Online Gambling Barometer, a project carried out jointly by the NOGA and the market research institute IPSOS, collects data on the online gambling behavior of the Dutch population. This research involves surveying the population to gain insights into their gambling habits.
A few findings from the press release [Page in Dutch] and an article by iGaming Business [Page in English]:
- Approximately 16% of the Dutch have engaged in online gambling in the past year
- The percentage of problem gamblers among all players has dropped from 42% to 39% compared to the previous year
- Around 37% of players would migrate to an illegal provider if there was a nationwide ban on online slots in the Netherlands
- Nearly two-thirds of the Netherlands cannot tell the difference between a legal and an unlawful provider
- Despite the uncertainty about identifying legal providers, 95% of players claim they currently play only at legal providers
Readers can access the complete study at this link: Download the study
Doubts Surround High Channelization Rate in the Netherlands
The Netherlands aims for at least 80% of online gamblers to utilize legal gaming offerings. The current gambling barometer indicates that the nation has surpassed this target with an astounding 95%
A research paper from the University of Leipzig found that the legal and illegal markets for online gambling in Germany each represent a similar portion. This raises questions about the channelization rate in the Netherlands. With a staggering 95%, the Netherlands' channelization rate appears startlingly high.
The survey data may be met with skepticism as only 32% of players can differentiate a legal from an illegal provider. Although a significant portion of players declare they only gamble at legal providers, 68% of players maintain they cannot distinguish legal from illegal providers.
Politicians Need to Weigh Decisions for the Netherlands
The Netherlands is witnessing a streak of political decisions that have sparked unease within the gambling industry. The NOGA states that these decisions are eroding the existence of the legal market.
Early this month, a proposed increase in the gambling tax was made in the coalition agreement, raising the tax from the current 30.5% to 37.8%. Last year saw the implementation of tighter advertising directives [Page in Dutch].
A contentious debate surrounds the proposal to completely ban online slots in the Netherlands. While some politicians see online slots as "high-risk games" and argue for their ban, others counter that the existing demand for online slots would push players towards the unregulated black market.
The study results suggest that a considerable proportion of players would continue to seek opportunities for online gambling even if online slot machines were only available in the unregulated market.
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