Dutch Regulator KSA Urges Joint European Crackdown on Unlicensed Gambling

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.

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 gaming industry’s most significant financial risks, warning that the unlicensed market exceeds the regulated market in several jurisdictions.

In a blog post published Sept. 11, Groothuizen said illegal operators strip the Netherlands of more than €500 million ($550 million) annually in lost tax revenue.

He added that the issue extends beyond lost tax receipts, pointing to offshore platforms that target self-excluded players while operating beyond the reach of national enforcement agencies.

KSA Says National Enforcement Is Not Enough

Groothuizen welcomed calls during a Dutch parliamentary debate earlier this month for stronger tools, including powers to block illegal gambling websites. However, he argued lawmakers paid far too little attention to cross-border enforcement.

“Against these globally operating tech and financial companies, the Netherlands is simply far too small,” Groothuizen wrote. “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 supporting offshore sites, including working with payment processors and tech companies to block access and payment channels.

Groothuizen noted that while regulators can impose fines running into tens of millions of euros, collecting those penalties remains difficult when operators frequently alter corporate structures or base themselves in uncooperative offshore jurisdictions.

Meanwhile, Dutch state-owned operator Nederlandse Loterij has launched legal action against three offshore sites in recent months.

“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 the 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 €12 Billion ($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 added.