Dutch gov't income from gambling tax reach record €1 billion due to online gambling

The government’s income from gambling tax rose last year to a record 1 billion euros. This is mainly due to higher revenue from online gambling, which has been legal in the Netherlands since October 2021, Statistics Netherlands (CBS) reported. Income from gambling tax has risen considerably in recent years. In 2021, it was still 343 million euros, according to CBS.

According to CBS, online gambling accounted for approximately 500 million euros of the total revenue last year. According to the Gambling Authority, the online market accounts for over a third of the market.

CBS also sees the legalization reflected in consumer spending in the gambling industry, expressed as stakes minus prize money. This rose from 2.5 billion euros in 2021 to 4.4 billion euros in 2023. In 2021, the income was lower due to the temporary closure of casinos during the coronavirus crisis.

According to the statistics agency, adjustments to the level of gambling tax also play a role. For casinos and domestic online gambling, this rate is the percentage that organizers must pay on the balance of stakes minus prize money. For lotteries, this is the rate winners pay on the prize won.

Last year, the gambling tax was 30.5 percent, compared to 30.1 percent in 2019. Only prizes of more than 449 euros are taxed. When online gambling was legalized, the tax was temporarily reduced to 29 percent at the end of 2021 and in 2022. The threshold value of 449 euros was temporarily abolished at the time.

The rate has been increased to 34.2 percent since the beginning of the year, and the government intends to increase it further to 37.8 percent next year.