The chair of the Dutch gambling regulator is advocating for enhanced Europe-wide measures to address illegal gambling, emphasizing the need for unified action beyond national regulators.

Michel Groothuizen, chair of the Kansspelautoriteit (KSA), stressed the importance of greater international collaboration to disrupt the financial, advertising, and technological infrastructures utilized by illegal operators in the Netherlands.

In light of the Financial Action Task Force (FATF) identifying illegal gambling as a significant financial risk within the industry, Groothuizen expressed concern about the illegal market surpassing regulated markets in certain jurisdictions.

Emphasizing the impact of illegal operators depriving the Netherlands of over €500 million ($587 million) in tax revenue, Groothuizen highlighted the challenge of enforcing regulations on offshore operators that target self-excluded players beyond national boundaries.

KSA Advocates for Stronger International Enforcement

In response to calls for enhanced tools to combat illegal gambling, Groothuizen emphasized the necessity for Europe-wide cooperation, stressing that the Netherlands alone lacks the resources to combat globally operating tech and financial companies.

The KSA’s efforts have increasingly focused on disrupting the support systems for offshore gambling sites, collaborating with payment providers and technology firms to impede illegal operators’ access to funding and resources.

Despite the KSA’s ability to levy substantial fines on operators, challenges arise in enforcing penalties when operators frequently alter corporate structures or operate beyond regulatory reach.

FATF Identifies Illegal Gambling as Major Financial Crime Threat

Following a warning from FATF on September 9 regarding gambling and gaming risks across jurisdictions, the organization highlighted the prevalence of illegal gambling markets exceeding legal markets in many regions.

With Euromat estimating Europe’s illegal gambling market revenue at €12B ($14.1B), FATF emphasized the risks of criminal entities moving funds through gambling platforms without legitimate betting activities.

FATF President Giles Thomson called for stronger oversight, crackdowns on offshore operators, and improved international cooperation to combat fraudsters and organized criminal networks exploiting the gambling sector.