"It is a big shift (in policy), but this is a new government with a more liberal approach," said Jaap Oosterveer, a spokesman for the Dutch ministry of public safety and justice.
In a letter sent to the Dutch parliament on Saturday, Fredrik Teeven, state secretary of security and justice, wrote that hundreds of thousands of Dutch defied a ban by gambling online, and so a change in the law would allow more oversight.
Several European countries such as France, Italy, Austria, Britain and Sweden already regulate online gambling, and the Netherlands should also be offering licenses for online games such as poker, bingo and sports betting, Teeven wrote.