The Netherlands government has presented its 2025 budget, which includes a gradual increase in gambling taxes.
According to the tax plan, the Ministry of Finance will first raise the tax rate from 30.5% to 34.2% in 2025, followed by a further increase to 37.8% in 2026.
It has also been reported that this tax will apply to winnings over €449 ($476) in lotteries and casinos within the Dutch market.
Operators and associations across the Dutch gambling industry have expressed their reactions to the tax increase, with the Nederlandse Online Gambling Association (NOGA), VAN Kansspelen, and VNLOK issuing a joint statement.
Their statement reads: “The regulated gaming sector (represented by trade associations NOGA, VAN Kansspelen and VNLOK) reacts with great concern to the government’s intention to increase the gambling tax from 30.5%, 34.2% in 2025, to ultimately 37.8% in 2026.
“In view of the phased introduction, the government shows some recognition of the risks of counterproductive effects on gambling policy objectives and the public purse, but does not allay concerns about the continued existence of regulated gambling offerings. This underlines the need to map the effects of the gambling tax, in conjunction with other announced policy changes, ongoing evaluations and previous parliamentary decisions, more fundamentally and carefully.”
The three organizations believe that the tax increase will result in more operators leaving the regulated market, which will ultimately lead to lower tax revenues.
“All the facts and figures indicate that the tax increase will lead to a further depletion of the regulated supply. Tax revenues will fall as a result. At the same time, an increase in illegal and therefore riskier gambling is to be expected.
“This is to the detriment of the general policy objectives of the Dutch gambling policy, which specifically focus on consumer protection and the prevention of fraud, crime and gambling addiction. If this is abandoned, social costs will increase and therefore mean additional financial setbacks.
“The members of NOGA, VAN Kansspelen and VNLOK call on the government to bring the financial targets in line with the gambling policy, and to discuss this with the parties involved. In this context, the social importance of the safe and regulated range of games of chance on the one hand and the income for the state treasury on the other hand will have to be balanced with each other.
“For these purposes, it is essential that the proper exploitation of legal supply remains possible, and it is precisely this that will come under serious further pressure as a result of the proposed tax increase.”
Earlier this week Flutter Entertainment announced its intention to leave the Netherlands early next month, citing tax increases as the reason.
The operator stated on its website: “The conclusion is that resources can be better deployed in larger or new markets. In addition, stricter regulations and gambling tax increases are also on the way. All these reasons have played a role in closing the doors permanently.”
Last month, Holland Casino reflected on the potential 7.3% tax increase, which has now become a reality, within its H1 financial results, stating that it was “irresponsible”.
CEO Petra de Ruiter said: “Our total tax burden will then be almost 50%. This means that black figures are not possible. We are going to make a big loss. Unlike supermarkets, we are not able to pass on price increases properly.
“The only alternative is that we take very undesirable measures such as aggressive campaigns to attract new guests, encouraging people to spend much more or by significantly reducing the prize money. These measures are unacceptable to Holland Casino and irresponsible from the point of view of government policy on gambling. In addition, the planned investments in our prevention policy will also come under pressure.”
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