Gambling tax hike not having the desired effect, authority says

The gambling tax hike from 30.5% to 34.2% implemented on January 1 is not having the desired effect of increasing tax revenues from gambling, the Netherlands Gambling Authority (KSA) reported after evaluating the measure. According to the KSA, other measures taken to protect gamblers have reduced the gross gambling result, so tax revenues have decreased despite the hike. Increasing the gambling tax is at odds with these measures, the KSA said.

“The measures we have taken to offer players more protection have made it financially more difficult for providers. This has led to a decrease in the gross gambling result for the entire market. Consequently, the gambling tax revenues have also decreased,” said KSA chairman Michel Groothuizen. “Even before the increase in gambling tax was implemented, the KSA indicated that this would be the effect.”

The gambling tax hike meant that casinos had to take measures to maintain their profitability. In the land-based segment of the market, the options are limited, so the tax increase is impacting this segment of the market in particular.

The KSA noted a more rapid decline in the number of physical gambling locations. The number of casinos decreased by 9 percent in the first quarter of 2025 compared to a year earlier. Between 2020 and 2025, the number of casinos decreased by an average of 6 percent per year.

The online market is also seeing a decrease in revenues, but this is mainly due to measures taken to protect gamblers, such as the implementation of gambling limits.

“A financially driven measure like a gambling tax is at odds with the policy objective of offering players more protection,” Groothuizen said. “If we want to offer players a protected gambling environment in the future, it requires serious, responsible providers. A financially sound, legal market is essential for this.”