Date: 09.04.2024

by Kajetan Sawicz

NOGA Expresses Concern Over Decreasing Channelization Rates in the Netherlands

The Netherlands Online Gambling Association (NOGA) has voiced its disappointment following the recent revelation of a decline in channelization rates within the Dutch gambling market. A significant drop from 93% in July 2023 to 90% in December indicates a concerning trend of Dutch players opting for illegal casinos over regulated operators.

A Closer Look at the Numbers

This unsettling development was highlighted in the latest report by Kansspelautoriteit, the Dutch gambling authority, which also noted an increase in the annual gross gaming revenue to $1.51 billion. Despite this increase, the growth pace of the local iGaming market appears to be slowing, a situation that has raised alarm bells within the industry.

Peter-Paul de Goeij, director of NOGA, expressed his apprehensions regarding the current state of affairs. He pointed out the slower growth rate of the Dutch online gambling market compared to other European countries, despite the apparent similarities in gambling behaviors across the continent.

Regulatory Concerns

De Goeij suggests that the decline in channelization rates and market growth could be attributed to the recent stringent regulations, including the ban on untargeted gambling advertisements and the prohibition of celebrity-endorsed gambling ads. He argues that the Kansspelautoriteit might be overreliant on assumptions, overlooking the potential negative impact these advertising restrictions could have on the industry.

Moreover, De Goeij believes that the current player protection measures, although well-intentioned, might be driving Dutch gamblers towards the vast array of illegal gambling sites due to their restrictive nature.

Advocating for a Balanced Approach

In light of these challenges, NOGA is calling for a more balanced approach to regulation and player protection. The association urges Kansspelautoriteit to prioritize the crackdown on illegal gambling websites and block operators targeting Dutch players without proper licensing.

NOGA reiterates its commitment to fostering a safe, responsible, and attractive online gambling market in the Netherlands. It highlights the risks associated with offshore gambling sites, emphasizing that such platforms lack adequate player protection and pose significant risks to consumers.

Our Comment on the Article

The concerns raised by NOGA shed light on the delicate balance between regulation and market viability in the iGaming industry. As the Dutch market grapples with these challenges, the need for a regulatory framework that effectively curtails illegal gambling while nurturing a healthy, competitive legal market has never been more apparent. This situation underscores the importance of stakeholder collaboration and innovative regulatory approaches to ensure the sustainable growth of the online gambling sector in the Netherlands and beyond.