The Kansspelautoriteit (KSA), the Netherlands Gambling Authority, has approved requests by LiveScore Malta and Tombola International to revoke their Dutch ‘KOA’ online gambling licenses. This decision follows the operators’ assessment of the Dutch market as increasingly unfavorable due to rising gambling taxes and stricter compliance requirements. LiveScore Bet and Tombola.nl were early entrants in the Netherlands’ regulated online gambling market but have now ceased operations. The Dutch government’s plans to further hike gambling taxes and implement stringent regulatory measures have created significant challenges for operators, prompting a strategic reassessment of market viability.

Licenses Revoked for LiveScore and Tombola

Authorisation by the KSA:
On December 23, 2024, the KSA officially terminated the Dutch online gambling licenses of LiveScore Bet and Tombola.nl. This revocation means both brands are no longer permitted to offer online gambling services in the Netherlands.

Customer Notification:
LiveScore Bet had informed its customers and media partners in November of its intention to exit the Dutch market by the end of 2024. Tombola, a European subsidiary of Flutter Entertainment Plc, had similarly scaled down its Dutch operations earlier.

Tax Hikes and Market Viability

Commercially Non-Viable Market:
The Dutch market’s increasing gambling tax rates, set to rise from 30.5% to 37.8% by 2026, were a significant factor behind the operators’ decision to withdraw. LiveScore Group explicitly cited the tax hikes as rendering the market commercially unfeasible.

Two-Tranche Tax Increase:
As part of the Netherlands’ Budget 2025, the Conservative coalition government announced a two-stage tax hike on gambling revenues:

34.2% in 2025
37.8% in 2026

Regulatory Challenges in the KOA Market

KOA Act Overview:
Introduced on October 1, 2021, the KOA Act established a regulated online gambling framework. However, successive revisions have imposed stricter compliance requirements, including:

Enhanced advertising restrictions
Customer deposit limits
One-on-one ID verifications
Monthly loss limits (€350 for general customers and €150 for individuals under 25)
Impact on Operators:
These measures have increased operational complexity and reduced profitability for many operators. The stricter regulations, combined with tax hikes, have led several international companies to reassess their Dutch market presence.

Market Dynamics: Early Entrants and Evolving Regulations

Initial Participation:
LiveScore and Tombola were among the first ten operators to receive KOA licenses in 2021. Their early participation underscored initial optimism about the regulated market's potential.

Shifting Regulatory Landscape:
Since its inception, the KOA market has faced continuous regulatory tightening. The latest changes, including monthly loss limit checks and duty of care measures, have further complicated the operating environment for gambling companies.

Future of the Dutch Gambling Market

New Minister to Lead Reforms:
Teun Struycken, the newly appointed Legal Protections Minister, will oversee the next phase of KOA market reforms. His role will include evaluating proposals to update and streamline the KOA Act.

Industry Concerns:
Operators have expressed concerns that the Dutch government’s aggressive tax and compliance measures may stifle market growth and inadvertently drive customers to unregulated platforms.

Bottomline

The Dutch gambling market’s evolving regulatory and tax landscape has created significant headwinds for operators. The exit of LiveScore and Tombola highlights the challenges faced by international gambling brands in balancing profitability with compliance in increasingly restrictive environments. As the Netherlands prepares for further KOA Act reforms, the government will need to strike a delicate balance between safeguarding consumer interests and maintaining a viable, competitive market for licensed operators.