The Netherlands’ current hike in playing tax, from 30.5% to 34.2%, has failed to obtain the federal government’s meant aim of rising tax revenues. Despite the upper tax price, the primary half of 2025 noticed a big drop in tax assortment, amounting to a €30 million shortfall in contrast to the identical interval in 2024. The Dutch Gambling Authority (KSA) carried out an impression evaluation, revealing that the anticipated income enhance was not realized. The improve has led to declines in each on-line and land-based playing income, negatively impacting the general tax receipts.
Unintended Consequences of the Tax Increase
The greater tax price has put strain on playing operators, forcing them to scale back prices in varied methods, similar to reducing again on promoting and reducing payout ratios. As a end result, gamers are turning to unlawful casinos, the place they discover greater bonuses and extra favorable payouts. KSA Chairman Michel Groothuizen expressed concern, stating that this development is undermining the aim of defending gamers and offering a secure, regulated surroundings for playing.
The improve within the playing tax price, carried out in January 2025, was meant to elevate authorities income. However, the KSA’s report signifies that this aim has not been met. The evaluation discovered that gross gaming income (GGR) within the on-line market decreased by 8% within the first quarter of 2025 in contrast to the earlier quarter, whereas land-based casinos noticed a 4% decline in the identical interval. This lower in GGR is partly due to the brand new laws, together with participant safety measures, that are placing further monetary pressure on operators.
Land-based playing venues have been hit notably exhausting by the tax improve. The variety of these institutions dropped by 9% within the first quarter of 2025 in contrast to the earlier quarter, marking an accelerated decline from the earlier common of 6% per yr. Online operators, alternatively, have extra flexibility to modify their operations, similar to altering payout percentages and decreasing operational prices, which has helped them take in a number of the impression. Nevertheless, even they’re feeling the monetary strain.
Shifting Players to the Unlicensed Market
One of the unintended penalties of the tax improve has been a shift in playing conduct. The KSA’s report reveals that a good portion of playing cash, roughly half of it, is now flowing by way of unlawful, unlicensed operators. These illicit platforms are in a position to supply greater bonuses, higher payout ratios, and fewer restrictions, making them a gorgeous various for gamers. As a end result, the authorized market is seeing a decline in each gamers and income, whereas unlawful playing is flourishing.
The KSA has warned that this shift to the unlicensed market may jeopardize the federal government’s long-term aim of making a safe and controlled playing surroundings. Groothuizen acknowledged that the present state of affairs, the place monetary pressures are forcing operators to make much less favorable choices for gamers, conflicts with the first aim of guaranteeing a protected gaming surroundings. If the playing market is to stay financially viable and safe, a robust, accountable, and legally compliant operator base is important.
In response to the damaging impression of the tax hike, trade gamers, together with the Dutch Gambling Providers’ Association (VNLOK), have known as for a reevaluation of the present tax price. They have proposed freezing the playing tax price at 34.2% whereas additional investigating its results in the marketplace. VNLOK emphasizes that the federal government should concentrate on extra successfully addressing the rising unlawful playing market and implementing insurance policies that may forestall gamers from looking for unlicensed operators.
The Dutch gambling sector is going through a crossroads, with the federal government’s coverage decisions placing strain on operators and gamers alike. As the KSA continues to monitor the state of affairs, it’s turning into more and more clear {that a} steadiness wants to be struck between participant safety, income era, and market stability.
