For over a decade, the Netherlands has been working towards formulating legislation allowing online casinos and bookmakers to set up legal businesses in the country. The Dutch online gambling market has exploded particularly the sports betting sector.
The industry’s growth is attributed to a number of factors, but the main driver is the recent legalization of online gambling in the Netherlands. This article will delve into the growth of the Dutch sports betting market.
A Historical Overview of the Dutch Sports Betting Market
In 1964, the Netherlands’ legislature enacted a legal framework to govern all gambling-related activities in the country. For over half a century, the Netherlands has had a unique system of lottery and gambling.
Having been drafted before the advent of the internet, the pioneer legislation was highly outdated by the time the first online bookmaker launched. Following the establishment of the Kansspelautoriteit (KSA), discussions on the reform of Dutch gambling law commenced in 2012.
Besides regulating online betting, the new legislation would also shed light on the dynamic landscape for players. The draft of the new Dutch gambling law was approved by Senate in February 2021 and took effect on April 1, 2019. Operators interested in setting up online sportsbooks are now free to submit license applications.
The first legitimate online gambling site went live on October 1, 2021 – six months after the enactment of the KOA Act. More sportsbooks are expected to enter the Dutch market.
Presently, Unibet Nederland is arguably the best-rated sportsbook in the Netherlands. It’s licensed and safe. But more importantly, it’s personalized to suit Dutch bettors effectively.
The Remote Gambling Act of the Netherlands (KOA Act)
The Dutch betting industry has always been subject to rigorous and stringent regulations. Despite the leeway created by the Remote Gambling Act, allowing private persons to join the online gambling market, the Dutch approach still prioritizes player security.
Players’ social security numbers are automatically collected in a central registry (CRUKS) at both online and land-based gambling houses. The law has also made self-exclusion possible across all betting websites. IDIN-based age verifications are also required by law.
When you self-exclude, you will be unable to visit online bookmakers, and operators cannot market to you either. Virtual bookies are also required to abide by stringent marketing and promotion guidelines. Dutch lotteries are exempt from the CRUKS.
Online gambling operators in the Netherlands are required to participate in the Controledatabank (CBD), the KSA’s control database. The KSA uses this database to keep tabs on all online casino activities.
The Dutch Gambling Market by Revenue
As of 2018, the Dutch gambling industry contributed 9% of the country’s GDP. Illegal online gambling alone accounted for 9% of the total iGaming income in 2015. With the introduction of legal online betting, the gambling market is set to grow even further.
According to a recent report by Alternar, the sports betting market in the Netherlands grew from $26.1 billion in 2019 to $36.4 billion in 2021. The same report indicates that the market is expected to grow to a whopping $52 billion by 2026.
As the iGaming market opens up in the Netherlands, many operators and software developers have realized the young market’s potential and are already setting up shops in the region. The new market offers potential for revenue and unique ways to adapt technologies that fit best for Dutch punters.
Technological and Demographic Overview
The Netherlands is home to about 17.15 million people with access to mobile phones – slightly above 99.2% of the country’s population. In addition, 16.47 million people, or 96% of the Dutch population, are connected to the internet.
The average Dutch internet user spends about five hours and 28 minutes browsing the internet. 95.7% of these internet browsers use their smartphones, 84.5% laptops/desktops, and 55% tablet devices.
These statistics show that the Netherlands’ strong digital growth is pivotal in propelling the country’s online sports betting market.
Changing Player Preference
Currently, the casino sector enjoys a more significant market share than the sports gambling sector in online and land-based markets. Statistics indicate that the sports betting industry has a larger market share in the online space than the brick-and-mortar one.
That notwithstanding, the gambling market in the Netherlands is still dominated by the casino sector. As time progresses, though, forecasts show significant growth in the sports betting market in the next five to ten years following the establishment of the new gambling legal framework.
Football is the most popular sport in the Netherlands and the most significant contributor to sports betting. Industry experts forecast a surge in football betting after the enactment of the KOA Act.
Tennis happens to be the second most popular sport among the Dutch when it comes to betting. The sport has generated a more significant GGR per annum than other sports except for football.
The Future of the Dutch iGaming Market
There are high hopes for the future of the Dutch iGaming industry, as Dutch punters are happy spenders. New players are expected to join the sports betting markets, and the existing customer base will continue playing on licensed and trusted betting platforms.
In the years to come, industry experts predict that online casinos and sportsbooks will continue marking the sports betting experience more appealing and rewarding for Dutch punters.
Although sports betting is already popular in the Netherlands, it’s still expected to expand even more. Such an expansion will allow operators to generate more profits and establish strong customer relationships.
Remote betting service providers are set to improve their platforms to attract new customers. As these companies get innovative to achieve this objective, there will be numerous player benefits.
Conclusion
Before the enactment of the new gambling legal framework, sports bettors in the Netherlands had to rely on either brick-and-mortar or offshore bookmakers. With a new, young, and thriving online sports betting market, the Netherlands is thriving as an iGaming hub.
If you are an investor looking for a ripe market, you should consider setting up sports betting business in the Dutch market. As a player, the market presents a competitive environment where operators are more than willing to offer lucrative offers, bonuses, and promos. Sign up with any reputable online Dutch bookmakers to enjoy a seamless sports betting experience on the go.