Illegal gambling has become the “principal threat” to licensed markets worldwide, according to Michel Groothuizen. He is the Chairman of the Dutch Gambling Authority, also known as Kansspelautoriteit or KSA, which oversees one of the leading regulated online casino markets in Europe.
While speaking at the IAGR 2025 Conference in Toronto, Ontario, Groothuizen advised global regulators to take ownership of the ongoing crisis. That’s why he proposed the establishment of an Interpol-style international body to coordinate enforcement and intelligence sharing.
“Illegal gambling is no longer a peripheral problem; it is the principal threat to every regulated market in the world. We must act together as if we are the issue owners here,” Groothuizen warned.
A 21st-Century Battle
Groothuizen described a widening gap between agile criminal networks and slow-moving regulatory frameworks, and labelled it a “technological mismatch.”
“It feels like we’re fighting a 21st-century war with medieval tech. Bigger and bolder ideas are needed to fight the black market, and that requires a deeper pool of stakeholders with technical expertise,” he said.
In his speech, he explained that traditional enforcement tools, often developed before the rise of smartphones, crypto payments, and AI marketing, can no longer keep up with the evolving methods used by unlicensed operators.
The Black Market: Fast, Global, and Dangerous
According to Groothuizen, the illegal gambling ecosystem now operates as a sophisticated, borderless network that consistently outsmarts federal regulators.
“Illegal operators are innovative and agile. They are our most difficult opponent,” he said. “We are battling a 21st-century opponent with outdated technology, and that puts us at a natural disadvantage.”
In the Netherlands, the issue has reached critical levels. While over 90% of players use legal platforms, half of all gambling expenditure now happens on unregulated sites. Groothuizen attributed this partly to the country’s new advertising standards from 2023. He believes the changes have unintentionally pushed consumers toward illegal platforms.
He shared that the government was warned about the overflow of advertising, but if the market gives way to illegal operators, the situation will only go further south.
Overregulation Risks and Political Pressures
Groothuizen acknowledged that Dutch policymakers increasingly view gambling as a “high-risk product,” which has led to stricter rules such as bans on celebrity endorsements, untargeted ads, and a €700 monthly deposit limit per operator.
He agreed that consumers must be protected, but fears that overregulation could have the opposite effect. The Chairman is alarmed that overregulation could force players to unsafe websites, which is something that the country wants to avoid.
Groothuizen added that the growing compliance burden and declining revenues are making it difficult for licensed operators to compete fairly with unlicensed rivals.
Engaging Big Tech
Groothuizen argued that the fight against the black market cannot succeed without addressing its digital and financial enablers, which are the Big Tech companies and leading payment providers.
He remarked that this cannot be done without Big Tech and that social media channels have become the frontline where consumers see illegal gambling ads.
Another tactic is when unlicensed operators buy expired Dutch web domains, from restaurants to schools, to manipulate search rankings. Meanwhile, influencers promote offshore casinos to young audiences through livestreams on platforms like YouTube, Twitch, or Kick.
“Those who do not know that an illegal website exists are not likely to visit it. And those who cannot make a deposit will quickly leave. The solution must therefore include the actors who make the market possible in the first place,” Groothuizen added.
Groothuizen called for regulators to work closely with digital platforms and financial institutions. And if necessary, introduce EU-level standards similar to anti-money laundering rules. He said that if there’s not enough cooperation from platforms, then European institutions must step in and intervene.
A “Gambling Interpol”
Still, the highlight of the speech was Groothuizen's proposal for the development of a “gambling Interpol. In his words, this will be a coordinated international framework to share data, execute joint operations, and apply collective pressure on the black market.
“Let us put our efforts mainly into a sort of gambling Interpol, first Europe-wide, then perhaps worldwide. The illegal market knows no borders. Our cooperation should be no different,” Groothuizen remarked.
He even compared the current enforcement landscape to a futile game of whack-a-mole. “It’s like battling a Hydra, cut off one head, and two more appear,” he said.
A Shared Moral Duty
Groothuizen concluded by reframing the issue as a collective moral responsibility for governments, regulators, and the private sector alike. He closed with a rallying call:
“Let us all act as if we are the issue owner here. Only by taking ownership together can we create an ecosystem capable of protecting players and striking a real blow to the illegal market,” concluded Groothuizen.
Dutch Market Faces First Signs of Cooldown
In the meantime, the KSA has reported a cool-off in the country’s regulated market for online gambling, while illegal offerings continue to grow stronger. In the first half of 2025, licensed casinos generated €600 million in gross gaming revenue or 14% less than the previous period, which is mainly due to new deposit limits and stricter player protection rules.
Still, player participation increased to 1.29 million active accounts. However, the average monthly losses dropped from €146 to €119 per player. According to the regulator, this could be due to players signing up for multiple accounts to bypass the spending limits.
However, KSA is worried that the illegal market has outperformed the legal one, generating €617 million in revenue. It’s reported that 94% of Dutch players play on legal sites, but the channelisation rate has dropped below 50%.
