Gambling industry: Growing Restrictions Are Pushing Players Toward Illegal Gambling
The combination of restrictions and high taxes in the EU and other countries is having a counterproductive effect, making licensed online casino operators less appealing to players. This statement comes from Dutch trade association VNLOK in light of the local government’s decision to continuously raise the gambling tax rate.
A Closer Look at the Situation Itself
According to VNLOK, the licensed gambling operators reported revenue for the first half of 2025 was more than 25% lower in comparison with the same period of 2024. Despite an increase in the gambling tax rate, the overall tax revenue from the 70% of the Netherlands’ iGaming industry currently stands at just 83% of last year’s level.
This comes after the local government set additional strict rules for online gambling and increased taxes by 3,7%, from 30.5% to 34.2%, with a further increase to 37,8% by 2026.
The trade association and local gambling industry have shared concerns that such measures have significantly reduced legal online casino activity. In order to maintain profitability under the higher tax burden, it is said that legal operators are forced to reduce gaming bonuses and payouts, which becomes increasingly less appealing to customers.
As previously reported by the Netherlands Gambling Authority (KSA) in 2024, only about half players still use legal platforms, while the other half of the country’s online gambling revenue is going to unlicensed platforms. The growing restrictions seem to worsen the tendency even further.
What’s Рappening Elsewhere?
Apart from the Netherlands, this gambling-related legal paradox is affecting other countries, too.
In Sweden, since implementing strict deposit limits and other iGaming restrictions, a growing number of players are also switching to unlicensed casinos. The challenge is acknowledged and reported by the Swedish Gambling Authority (Spelinspektionen). According to them, up to 40% of gamblers may be using illegal online casinos.
The Australian government’s measurements also resulted in offshore site rise: while gambling ads banned for legal operators and only ID-linked player cards are allowed, underground casinos can advertise freely — and increase customer rate without any verification.
Similar outcome of potential restrictions overreach for the online casino industry has drawn criticism in Germany, UK and other countries, where gambling laws, stake limits on online slots and deposit caps and other regulations had caused the players migration to unregulated crypto casinos and iGaming black market.
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