Dutch iGaming Market Matures, Focuses on Mergers for Competitive Edge

René Jansen, chair of the Netherlands’ Kansspelautoriteit (KSA), has provided insightful observations on the evolving landscape of the Dutch gambling market. As Jansen prepares to conclude his tenure at KSA in 2024, he reflects on the market’s maturation and the strategic shifts operators are making towards mergers and acquisitions to enhance their competitive standing.

The Dutch gambling market is witnessing a significant shift! KSA chair René Jansen reports a move towards market consolidation as the sector matures.

In a recent blog for the KSA, Jansen highlighted the initial surge in license applications that flooded the regulator in 2021, coinciding with the opening of the regulated online gambling market. However, this influx has since tapered off, with a noticeable decline in new applications and an expectation that this trend will continue into 2024.

This maturation phase sees operators shifting focus from merely securing a market position to strengthening their competitive edge. Mergers among smaller operators and acquisitions by larger companies are becoming increasingly common. This strategy is not just limited to domestic players; investment firms and larger foreign entities, previously without a presence in the Netherlands or those who failed to secure licenses, are now actively pursuing acquisitions.

Keep a close eye on these market dynamics. Whether you’re an industry participant, investor, or regulator, understanding these changes is crucial for navigating the Dutch gambling landscape.

Jansen pointed out that licensees are applying to expand their gaming offers to include more categories, illustrating the market’s growing complexity. The competitive push, as noted by Jansen, has its implications, particularly concerning crucial aspects like duty of care, which must remain a priority for providers despite their market ambitions.

Foreign operators are particularly interested in acquiring Dutch companies well-versed in meeting local regulatory requirements, such as compliance with the Control Database (CDB). This interest underscores the value of local market knowledge and regulatory compliance expertise in the Dutch gaming sector.

Jansen’s observation that the market is shifting from “conquering a position” to “strengthening the competitive position and increasing market share” indicates a new phase of market maturity. As he prepares to step down as KSA chairman in July next year, the industry awaits to see how these trends will shape the future of iGaming in the Netherlands.