Since the Remote Gambling Act (KOA) was introduced in October 2021, the online gambling market in the Netherlands has gone through major changes. The legislation announced the start of a new era for the Dutch iGaming industry.
Interest in the Dutch iGaming market is increasing rapidly. It was expected that more than 1.5 million gamers would be using authorised online gambling sites by 2022. Net gaming revenue (NGR) from the market was at €3.4 billion, an incredible 85% growth over €2 billion in 2021. This fast growth is a result of the Netherlands' strong need for regulated online gambling services.
However, as of October 1, 2024, new deposit limits have come into effect, making a shift in the industry. These changes are expected to have a significant impact on the development of this fast-growing industry. These changes aim to protect players and promote responsible gaming while also presenting new challenges for operators. They may also influence how operators plan their strategies and how players engage with the market.
The new deposit rules
The latest deposit rules are designed to prioritize player protection and reduce the risks of problem gambling. The key aspects of the new regulations include:
- Net Deposit Limits: Players who are 25 years and older can only make a monthly net deposit of €700, while those who are 18 to 24 years old can only make a €300 monthly net deposit. Players must show proof of sufficient income if they want to go over these limitations.
- Required Communication for Higher Limits: Gamers who wish to set a deposit limit of more than €350 (or €150 for young people) must speak with the operator directly. Players are meant to learn more about the dangers of having large deposit limits and the support services that are accessible to them through this interaction.
- Real-Time Monitoring: Operators must have systems that alert players when they approach 50% and 100% of their set limits and provide them with information about their gaming activity every 30 minutes. Additionally, when players hit their entire limit, they will be automatically logged out.
Potential Impact
These new rules could have a big impact. Even though they protect players, there is a concern that strict deposit limits may lead to decreased player engagement. Some players may feel restricted by lower limits and decide to cut back on their playing. Others may turn to unregulated areas where these limitations are not applicable. This change increases the possibility of coming into contact with illegal operators and undermines the legislation' main goal of protecting players.
As licensed operators change their systems and procedures to meet the new criteria, their operating expenses are bound to go up. This includes putting in place monitoring systems, checking affordability, and requiring staff members who deal with customers to undergo mandatory training. Operators might reconsider their marketing plans and promotional offers because of higher operating costs, which could have an immediate effect on overall revenue collection. Smaller operators might struggle with these changes, leading to larger companies strengthening their positions.
As operators adjust their business models to comply with the new rules, there may be shifts in job roles across the industry. For example, operators might need more analysts to evaluate the effectiveness of new compliance measures or customer support staff trained to handle inquiries related to the new regulations
While the stricter deposit limits present challenges, they also offer opportunities for the iGaming industry. By educating players to set realistic boundaries and offering opportunities for reflection on gambling behaviour, the industry could develop a healthier player base that prioritizes safety over high-stakes gaming. This might improve the reputation of licensed operators and draw in more cautious gamers who respect safe gaming settings.
The Netherlands is now one of the most interesting markets in the iGaming industry because of the implementation of the Remote Gambling Act (KOA), which has encouraged development and innovation. However, operators and players face a new difficulty as a result of the upcoming deposit limitations. While these rules may have drawbacks, such as lower player engagement and higher operating expenses for operators, their main goals are to protect consumers and encourage responsible gaming. To stay competitive in the market and satisfy customers, businesses in this sector will need to quickly adjust by rethinking their strategy and putting the necessary procedures in place. By doing so, the Dutch iGaming industry can maintain its growth while setting an example for ethical and sustainable business practices.