Dutch Regulator Flags Unlicensed Operator Surge Amid Revenue Dip

Key Takeaways:

• Kansspelautoriteit (KSA) reports a 16% drop in H1 2025 gross gaming revenue to €600m, attributing it to enhanced advertising curbs and player protection mandates.
• Unlicensed sites are capturing a growing share of the Dutch market, prompting KSA to intensify enforcement actions against illegal operators.
• The decline underscores broader European trends in regulated i Gaming, where compliance costs are reshaping operator strategies and market dynamics.

The Kansspelautoriteit (KSA), the Netherlands' live gambling regulator, has issued a stark warning over the rising influence of unlicensed operators in the country's online gaming sector. In its latest market update covering the first half of 2025, the KSA revealed that licensed gross gaming revenue (GGR) fell 16% year-on-year to €600m, marking a significant slowdown from previous periods of steady growth. This downturn follows the implementation of stricter advertising restrictions introduced in early 2024, which limited promotional spending and targeted vulnerable player demographics. The KSA noted that while overall gambling activity remains stable, a portion of this revenue is shifting toward unregulated platforms, estimated to account for up to 20% of total play based on traffic analytics and player surveys.

Enforcement efforts have ramped up accordingly, with the KSA blocking over 200 illegal domains in the past six months and collaborating with payment processors to restrict transactions to unlicensed sites. A key focus has been on live casino offerings, where live casino table games and immersive dealer experiences have proven particularly attractive to cross-border operators evading Dutch licensing requirements. The regulator emphasized that these platforms often lack mandatory responsible gambling tools, such as deposit limits and self-exclusion mechanisms, heightening risks for players. Industry stakeholders, including major licensed operators like Bet365 and Unibet, have voiced support for the KSA's crackdown but highlighted the need for harmonized EU-wide measures to curb offshore incursions.

This development carries profound implications for the European live casino landscape, where regulatory harmonization remains fragmented despite shared goals of player safety. The Dutch revenue dip signals potential contagion effects across neighboring markets like Belgium and Germany, where similar ad bans and duty hikes are in play. For live dealer studios such as Evolution and Pragmatic Play, which rely on compliant partnerships for studio expansions in the region, the shift toward unlicensed channels erodes revenue streams and complicates technology deployments. Operators face elevated compliance costs—estimated at 15-20% of operating budgets—for KYC enhancements and geofencing tech, potentially stifling innovation in areas like VR-enhanced blackjack or multilingual roulette tables.

On the positive side, the KSA's proactive stance could set a benchmark for sustainable growth, encouraging investments in localized content and live casino payment integrations that boost player trust. In Asia, where markets like the Philippines are witnessing parallel regulatory tightening, European providers may pivot toward diversified studio builds to offset losses. Ultimately, this episode reinforces the sector's trajectory toward a more mature, player-centric model, where technological safeguards and cross-border cooperation will define competitive edges. As the KSA prepares its annual compliance report in Q1 2026, the live casino industry watches closely for signals on potential duty adjustments or enforcement subsidies to aid licensed growth.

Sources:

https://www.kansspelautoriteit.nl/actueel/nieuws/2025/10/14/h1-2025-ggr-daling-en-illegale-groei

https://igamingbusiness.com/news/ksa-warns-unlicensed-gain-dutch-revenue-fall

https://sbcnews.co.uk/europe/2025/10/14/netherlands-ksa-unlicensed-threat