Several major Dutch casino operators have urged lawmakers to reconsider recent tax hikes, warning that the measures are hurting the regulated market and failing to deliver the expected revenue for the state.
In an open letter sent to the House of Representatives of the Netherlands, the Netherlands Online Gambling Association, together with Holland Casino and Dutch Lottery, argued that recent tax policy changes are placing unsustainable pressure on licensed operators.
According to VNLOK, analysis of recent tax filings indicates that gambling tax revenue in 2025 may fall to €288 million, significantly below the €322 million initially projected by the government. The shortfall of approximately €43.5 million comes after lawmakers approved higher gambling taxes in late 2024, increasing the gross gaming revenue tax rate to 34.2% in January 2025, with a further rise to 37.8% scheduled for 2026.
The tax burden imposed on operators is said to be driving them to cut costs and alter their product offerings in order to remain competitive. This will drive players toward unregulated offshore sites that are not regulated by the Dutch authorities, which creates the potential for player protection and security issues.
The Kansspelautoriteit (KSA) has confirmed that there are increasing fears that taxes are also affecting the legal market. Reports show that there was approximately €617 million processed by illegal online gambling sites from February to December 2020, in comparison to the regulated market, which had approximately €600 million processed by its legal online gambling site.
The industry requested that lawmakers conduct an extensive analysis of the effect of the tax increases on the legal market and player behaviour. The industry associations noted that this analysis should be based on reliable data so that it can be determined if the tax increases are driving players to unregulated illegal gambling operations.
Industry representatives argue that excessive taxation could ultimately undermine the regulated gambling ecosystem.
