Dutch Gambling Regulator Calls for European Offensive on Illegal Market

The chair of the Dutch gambling regulator has called for stronger Europe-wide action against illegal gambling, arguing that national regulators cannot combat offshore networks alone. The Dutch Gambling Regulator is calling for more international coordination to tackle offshore gambling. (Image: Getty) Michel Groothuizen, chair of the Kansspelautoriteit (KSA), said the Netherlands needs greater international cooperation to disrupt the payments, advertising, and technology infrastructure used by illegal operators. His comments came days after the Financial Action Task Force (FATF) identified illegal gambling as one of the industry’s most significant financial risks. It warned that in some jurisdictions, the size of the illegal gambling market now exceeds the regulated market. In a blog post published on September 11, Groothuizen said illegal operators leave the Netherlands with more than €500 million ($587 million) in lost tax revenue. He added that the issue goes beyond lost tax revenue, pointing to offshore operators that target self-excluded players. He argued that these operators were beyond the reach of national enforcement agencies. KSA Says National Enforcement Is Not Enough Groothuizen welcomed calls during a Dutch parliamentary debate earlier in September for stronger tools, including powers to block illegal gambling websites. But he said lawmakers paid too little attention to international enforcement. “Against these globally operating tech and financial companies, the Netherlands is simply far too small,” Groothuizen said. “We inevitably need Europe to get such parties to work with us in the fight against illegal gambling.” The KSA has increasingly focused on disrupting the infrastructure that supports offshore gambling sites. That includes working with payment providers and technology companies to make illegal operators harder to find and fund. Groothuizen noted that regulators can impose fines running into tens of millions of euros. Meanwhile, Dutch state-owned lottery Nederlandse Loterij has taken legal action against three offshore sites over recent months. However, collecting fines can prove difficult when operators frequently change corporate structures or base themselves beyond the regulator’s reach. “We are fighting a worldwide network of ruthless criminal organizations with dedicated neighborhood police officers, when we should actually be deploying an international investigative service,” Groothuizen wrote. “Real impact requires clout at European level.” FATF Flags Illegal Gambling as Major Financial Crime Risk The intervention followed a September 9 warning from FATF, which examined gambling and gaming risks across more than 80 jurisdictions. FATF found that illegal gambling markets “rival or even exceed the size of legal gambling markets” in many jurisdictions. The statement is supported by recent analysis from trade body Euromat, which estimated the net revenue generated by Europe’s illegal gambling market at €12B ($14.1B). The FATF report also highlighted criminals moving funds through gambling platforms without meaningful betting activity. “Without robust safeguards, these sectors can be attractive gateways for fraudsters, professional money launderers, and organized criminal networks,” FATF President Giles Thomson said. He urged governments to strengthen oversight, crack down on offshore operators, and improve international cooperation. “It is naive to cling to the idea that a well-regulated national legal market and a national regulator are enough to tackle this problem,” he said. The post Dutch Gambling Regulator Calls for European Offensive on Illegal Market appeared first on Casino.org.