Netherlands to Raise Gambling Tax in Two Phases by 2026
The Dutch government has published its budget plans for 2025, which include a phased increase in the gambling tax.
Netherlands gambling tax to increase from 30.5% to 37.8%.
LISTEN TO THIS ARTICLE:The Ministry of Finance detailed that the tax will initially rise from 30.5% to 34.2% in 2025, followed by a further hike to 37.8% in 2026.
This higher tax will apply to lottery or casino winnings exceeding €449 within the Dutch gambling market. Unsurprisingly, the announcement received mixed reactions from various operators and associations in the gambling sector.
Backlash from Dutch Gambling Associations
A joint statement from the Nederlandse Online Gambling Association (NOGA), VAN Kansspelen, and VNLOK expressed concern regarding the government's decision to increase the gambling tax.
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.
Fears Operators Will Abandon Market
The three associations fear that the tax hike could push more operators out of the regulated market, which would lead to a drop in tax revenue.
The statement went on to argue that the data suggests that the tax hike will further reduce the availability of regulated gambling services, ultimately resulting in less tax income. Simultaneously, it is expected that illegal and riskier gambling will increase.
The organizations believe that the change would counteract the main objectives of Kansspelautoriteit (KSA), the Dutch gambling regulatior, which are designed to safeguard consumers and curb fraud, crime, and gambling addiction. They argue that weakening the framework will lead to higher social costs, placing additional financial strain on the system.
As such, the trade bodies are urging the government to align its financial goals with existing gambling policies and to hold discussions with key stakeholders. They say that it is important to strike a balance between the importance of a safe, regulated gambling landscape and the need for state revenue.
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Operators Announce Departures
Earlier in the week, Tombola, part of Flutter Entertainment, announced its decision to exit the Dutch market at the start of next month and said that the upcoming tax increase is the primary reason. Furthermore, last month, Holland Casino warned of the negative impact of the planned 7.3% tax rise, which has now been confirmed. In its H1 financial report, the casino called the increase “irresponsible”.
At the time, Holland Casino CEO Petra de Ruiter said that the company’s total tax burden will increase to close to 50%, which will make profits almost impossible without taking “undesirable measures” such as aggressive advertising campaigns, encouraging larger bets, and reducing prize money.
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