A Leap Forward for Online Gambling in the Netherlands, Yet Public Recognition Elusive
Online Market in the Netherlands Displays Growing Maturity According to IPSOS Poll
A recent survey by the Netherlands Online Gambling Association (NOGA) and IPSOS, an esteemed market research firm, paints a complex picture of the online gambling market in the Netherlands. The report, now in its second year, points to a developing market perceived to be maturing, but with a meager increase in public acknowledgment of legal online gambling providers.
Soaring Participation and a Stable Risk Gambling Population
The 2023 NOGA Online Gaming Barometer showcased a rise in the number of Dutch citizens engaging in online gambling compared to two years prior. Concurrently, the number of individuals gambling with unlicensed gambling providers has dropped, with 94% currently opting for the secure, responsible environment provided by licensed providers.
Intriguingly, the survey disclosed that 14% of the nation's adult population is involved in online gambling, representing a surge from the 11% recorded previously. The majority of online gamblers are men or young adults, with the percentage of young players swelling from 21% in 2022 to an impressive 30% currently.
A rise in the frequency of play is also observed, attributed to the increasing preference for smartphone gambling and the popularity of online sports betting and online casinos among players.
Despite the upsetting increase from 8% to 14% in risk gambling among young adults, it appears that the overall incidence of risk gambling in the country remains relatively static. The majority of players recognize and acknowledge the hazards of gambling addiction.
Waning Confidence in the Recognition of Legal Providers
In a striking contrast to the sentiments of Dutch minister for legal protection, Franc Weerwind, the survey reveals a promising outlook for the industry's self-regulating approach to advertising, as fewer respondents reported seeing gambling advertisements over the past year.
However, the survey unveiled an alarming challenge in the realm of public recognition of legal online gambling providers that has not significantly improved since the legalization of online gambling in October 2021. Disconcertingly, more than two-thirds of the populace remains unable to discern between a licensed operator and an offshore provider.
Peter-Paul de Goeij, director of NOGA, stressed the importance of this aspect for the market, underscoring the necessity to make it straightforward and evident for consumers to identify licensed, safe providers. He expressed concerns that declining recognition may worsen as a result of the upcoming advertising ban, urging collective efforts with the government to fortify the licensed offer and enhance consumer protection.
"Together with the government, we aim to ensure that the licensed offer remains both safe and attractive to customers, while simultaneously deterring them from engaging in illegal activities," de Goeij concluded.
Enrichment Insights:
- Unlicensed operators continue to employ SEO and Google Ads to maintain visibility in the Netherlands, potentially disguising themselves as legal providers[1].
- High-profile legal cases, such as Betsson's obligation to refund considerable sums to unlicensed platform users, may have overshadowed efforts to promote legal providers[2][4].
- Concerns about the effectiveness of controls on gambling advertisements persist, as Google continues to grapple with a deluge of unlicensed gambling promotions[3].
- Ongoing discussions about potential reforms, such as heightening the age limit for certain games, suggest that the legal landscape is still fluid, potentially fueling public uncertainty and prolonging the path to increased public recognition of legal online gambling providers[5].
- Rising public and political concern over gambling visibility and potential societal impacts may diminish enthusiasm for promoting legal providers[5].
- Despite the rise in legal online gambling participants, a concerning number of Dutch citizens remain unaware of licensed operators, with more than two-thirds incapable of distinguishing them from unlicensed providers.
- As online sports betting and casino games gain popularity, frequency of play among gamblers has increased, attributed largely to the convenience of smartphone gambling.
- In an effort to combat this issue, Peter-Paul de Goeij, director of NOGA, emphasized the importance of making it easily understandable for consumers to identify licensed, secure providers, expressing concerns that the upcoming advertising ban could exacerbate the problem.
- Furthermore, the authoritative Netflix documentary "The gambling affair" and high-profile legal cases, like Betsson's mandatory refund of funds to unlicensed platform users, have contributed to uncertainty around legal providers.
- To strengthen the market and protect consumers, NOGA announced plans to collaborate with the government to ensure the licensed offer remains appealing and safe, and discourage illicit activities.
