Avalanche of Dutch casino closures puts slot machines in black market crosshairs
In the Netherlands, rising taxes and regulatory pressure are putting a strain on the gaming industry. Both land-based and online operators are struggling to maintain profit margins, and some have been forced to shut down entirely. As casinos and arcades shut down and offload their slot machines, the Dutch Gambling Authority (Kansspelautoriteit, or KSA) fears these machines could end up fuelling the black market.
What happens to slot machines when a business closes? When a company shuts its doors, it often attempts to sell or auction off its equipment. However, when it comes to gaming equipment, and slot machines, this creates a serious risk: unlicensed buyers may use the machines in illegal venues that offer no player protection — no age verification, no affordability checks, and no safeguards against problem gambling.
“These are professional devices,” . “It is important that buyers do not operate these slot machines without the necessary licences.”
To prevent misuse, the regulator has proactively contacted every identifiable buyer of the machines to remind them of their obligations under Dutch gambling law. “In order to install a slot machine in a catering establishment or gaming hall, an operating license must first be issued,” the KSA explained. “If it concerns a gaming machine, a presence permit for the location must also be obtained from the relevant municipality.”
New rules trigger revenue decline and offshore migration
In October 2024, new rules came into force requiring affordability checks and introducing monthly spending caps: €700 for adults over 25 and €300 for young adults aged 18 to 24. In the fourth quarter of 2024, immediately after these measures were implemented, online gambling revenue fell by 12.3%.
To some observers, this drop confirms that regulated platforms were overly reliant on high-spending problem gamblers. Others argue it shows players are migrating to offshore, unregulated platforms to avoid stricter requirements.
The KSA has published data that seems to support the latter claim: by the second half of 2024, more than half of Dutch gambling revenue had shifted to offshore sites.
Adding to the growing list of challenges for operators, the gambling tax rate increased from 30.5% to 34.2% in 2025, with another increase to 37.8% expected in 2026.
The KSA steps up its fight against the black market
However, operators, squeezed by rising taxes and shrinking margins, can still count on the KSA to tackle their biggest competitor: the black market.
The regulator has vowed to work closely with the Regional Information and Expertise Centres (RIEC), the police, and local municipalities to curb illegal activity.
The public is also being asked to help: a reporting centre has been launched for citizens to flag suspicious activity.
The KSA has made it clear that, if necessary, it will seize and destroy illegal gaming machines to keep them out of circulation.
