Channelisation
The share of a country's gambling activity that takes place with licensed operators rather than on the unlicensed market — the main measure of whether a regime is working.
What it means
Channelisation measures how much of the total gambling in a jurisdiction flows through licensed channels. A regime at 90% channelisation has captured nearly all play; one at 50% has half its activity happening outside the licensed system, beyond the reach of player protection, tax collection and responsible gambling controls. It's usually estimated rather than measured directly, since the denominator includes activity nobody reports.
Why it matters for operators
Channelisation is the argument that decides whether taxes and restrictions keep tightening. Regulators raising duty or imposing deposit limits face a trade-off: each turn of the screw increases revenue per licensed player while pushing some players toward unlicensed sites offering better odds and fewer checks. Operators cite falling channelisation when lobbying against increases, and regulators watch it because a licensed market that players leave has failed at its actual purpose. For market-entry planning, a market with weak channelisation means the licensed competitive set understates who you're really competing with.
Example
The Netherlands raised its gambling tax three years running — 30.5%, then 34.2%, then 37.8% from January 2026 — and the regulator publicly warned about the channelisation effect. Licensed operators facing a higher tax and stricter play limits compete against unlicensed sites carrying neither, so a rate rise that looks like more revenue per euro can produce fewer euros overall.