Netherlands Gambling Authority (KSA) chairman Michel Groothuizen recently released a scathing report on the state of the Dutch regulated gambling industry, discussing the continued presence of black market operators. While the regulator recently noted it was ready to collaborate with companies like Google, Groothuizen remained highly critical of Big Tech, alleging that illegal operators continue to advertise freely.
Young Users Face Significant Risks
According to Groothuizen, black market operators have not disappeared despite the Netherlands’ attempt to channel users toward regulated offerings. The KSA chairman notes that while roughly 90% of users engage with regulated offerings, people gambling on illegal websites spend disproportionately more, even rivaling the total revenues of the licensed sector.
For every euro wagered legally, another euro ends up in the illegal gambling industry.
Michel Groothuizen, KSA chairman
Dutch law enforcement has taken consistent measures to identify and shut down illegal gambling operations. However, collecting fines from offending companies and forcing them to stop their activities has proven challenging. The KSA is taking a new approach by targeting payment processors working with illegal operators and reducing the black market’s online visibility.
Youth gambling rates are especially concerning, as early exposure means that many young people register with gambling platforms as soon as they turn 18. Youth who engage with black market offerings may be especially at risk. These platforms often lack adequate consumer protection safeguards, with some even allowing underage individuals.
Fighting Big Tech Is Not to Be Done Carelessly
Groothuizen argued that companies like Meta and Google were indirectly complicit in the black market’s perseverance. He noted that Big Tech makes significant profits from advertisements for illegal gambling operators, both in the Netherlands and globally. According to Groothuizen, abandoning such a lucrative business model would be difficult for tech giants, yet remains necessary.
While the KSA claims to have ample evidence that Big Tech enables prohibited gambling activities, legal action remains a last resort. Such proceedings could take years, and success is not guaranteed. Groothuizen believes it is prudent to first work on agreements that encourage them to improve their conduct voluntarily and take responsibility.
Such opponents are prepared to fight all the way to the highest court, constantly throwing sand in the gears, meaning a final judicial ruling could easily be five years away.
Michel Groothuizen, KSA chairman
Some improvements are already underway. The KSA and Google recently announced a collaboration effort to create a whitelist of all licensed operators in the EU. This list could help the tech giant limit the visibility of unregulated platforms. While this effort is still in its infancy, it shows that Big Tech is at least willing to collaborate with regulators on some of the easier topics.