Dutch Gambling Tax to Reach a High of 36.7% by 2026

The new Dutch gambling tax hike will be implemented in two stages. The first increase is set for January 2025 when it will climb to 34.2% and then by January 2026 to 37.8%. This increase comes despite many warnings and industry concerns that the hike will push licensees out of the market.

Aim of the Staggered Approach

The coming tax hike is staggered across two phases to minimize the impact on the Dutch gambling industry and give the operators affected more time to adapt to the shift.

Currently, the tax rate is sitting at 30.5%, and the gambling tax hike will increase this figure to 34.2% of GGR on 1 January 2025. After that, the full increase is said to be implemented on 1 January 2026 and the rate will then increase to 37.8%. This rise will impact verticals and channels, including casinos and gambling halls to the lottery and Dutch online casinos.

This increase is estimated to generate additional tax revenue of €202 million per year between 2025 and 2028.

A Few Concerns

After only 3 years, Tombola International has announced that they will be exiting the Dutch gambling market. The company said that its reason for departure was due to stricter regulations and an increase in the country’s gambling tax rate. “Resources can be better deployed in larger or new markets,” the company said in a statement.

Earlier in the month, Holland Casino announced that it stopped its bingo offerings, leaving Unibet and Bet365 as the only bingo providers in the Dutch market.

The Dutch National Lottery expressed concerns that the tax increase would affect its direct funding of sports programs of the Netherlands Olympic Committee (NOC). This leads to many being worried about having sufficient funds for professional and amateur sports in the country.

The industry trade body (NOGA) insists that this hike will lead to a further erosion of the regulated supply of operators. The body stated that illegal and riskier gambling can now be expected.

NOGA stated, “This is at the expense of the general policy objectives of the Dutch gambling policy, which are precisely aimed at consumer protection and the prevention of fraud, crime, and gambling addiction.”

Comments From Holland Casino

State-owned gambling operator, Holland Casino faces a huge impact from the Dutch gambling tax hike. The Atlas reported that the casino will have to close down physical branches if they are not able to absorb the increased tax costs.

In a report in August 2024, the casino said that it would be impossible to operate normally and profitably. Chief executive Petra de Ruiter insisted the gambling tax hike was “irresponsible”. Holland Casino faced losses of €3.5m for the first six months of the year, following the 1% tax increase that was initiated.

A 37.8% rate increased the operator’s effective tax rate to around 50% of revenue, de Ruiter explained. “We will then make a significant loss,” she said. “Unlike supermarkets, we cannot properly pass on price increases.”

Conclusion

The only thing to help balance the books of the operators affected would be to cut the prize money for players and be more aggressive. These measures will have their own negative impact and are unacceptable and irresponsible with regard to the government’s policy on gambling.