Saudi Arabia reveals decrease in gaming revenue following implementation of deposit limits
Loosen Up the Stakes: The Dutch Gambling Landscape Undergoes a Shift
The Dutch gambling scene has seen a twist, thanks to the Kansspelautoriteit (KSA), the country's gambling regulator. Despite an uptick in active gaming accounts, the regulator has reported a dip in revenue, having pocketed €1.47 billion in 2024, a 6% growth compared to the previous year.
According to the KSA's spring report, the second half of 2024 witnessed a revenue slump, with a total of €697 million, down by 10% from the initial six months. These figures encompass the 12-month period ending 31 December 2024. This decline, in part, is attributed to the new player protection measures launched in October.
The KSA comments, "This downward trend might be due to both the European Football Championship's buzz in June 2024 and the fresh regulations meant to safeguard players in the online gambling industry."
In the new regulations, deposit limits are now correlated to a player's monthly net deposits. For instance, a monthly deposit of €700 halts any additional deposits for average players. Young adults between 18 to 25 years old bear €300 as the monthly cap.
Players with a provable, stable income can request higher limits.
Over the past six months, the number of active accounts has jumped from 1.1 million to 1.19 million. During this period, around 788,000 individuals actively engaged with licensed operators, accounting for approximately 5.4% of the Dutch adult population.
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In the Loop:The KSA's revenue drop can be traced to several factors post the introduction of stricter deposit limits. Here's a breakdown of the key factors:
- Strict Deposit Limits: Introduced in October 2024, these limits cap an individual’s expenditure on gambling, thereby lowering the overall revenue for gaming operators.[4]
- New Regulations Impact: The new regulations aim to protect players and prevent excessive gambling. Among other changes, the percentage of accounts losing over €1,000 per month dropped from 4% to 1.2% after the policy update.[1][3] While these measures cut down on risky spending, they inherently reduce the revenue of gaming operators.
- European Football Championship: The first half of 2024 saw a surge in wagering due to the European Football Championship, artificially boosting the GGR for that period.[1][4] Consequently, the subsequent drop in interest after the conclusion of the event contributed to the decline in revenue in the second half of the year.
- Illegal Market Activity: A considerable portion (up to half) of gambling activity occurs in the illegal market.[1][4] This diversion to the unregulated market reduces the revenue generated by legal operators.
- The Kansspelautoriteit (KSA) has observed a dip in revenue, with a recorded €1.47 billion in 2024, marking a 6% growth compared to the previous year.
- The decline in revenue, according to the KSA, might be due to the European Football Championship in June 2024 and the new player protection measures launched in October.
- In the updated regulations, deposit limits are now linked to a player's monthly net deposits, with an average individual's monthly cap set at €700, while young adults aged 18 to 25 years old have a €300 monthly cap.
- The stricter deposit limits, introduced in October 2024, contribute to the KSA's revenue drop by limiting an individual's expenditure on gambling, thereby reducing the overall revenue for gaming operators.
