The Netherlands Gambling Authority declared the recent tax hike a failure as revenue has continued to plummet since its introduction at the start of the year.
The country’s regulator, Kansspelautoriteit (KSA), admitted the move has backfired with gross gaming revenue (GGR) steadily declining across both online casinos in the Netherlands and land-based markets.
Dutch online gaming trade body, VNLOK, said tax revenue for 2025 so far stands at just 83% of the equivalent in 2024.
Last month it was reported over 100,000 people in the Netherlands have signed up for a voluntary gambling ban.
Why Did The Netherlands Increase Gambling Tax?
Last September, the Netherlands’ new Conservative coalition government confirmed it would introduce a two-step approach to raising income taxes generated by gambling firms.
The Ministry of Finance vowed to implement the hike in two steps, applying an increase to 34.2% in 2025 and 37.8% in 2026 – in order to allow sports betting apps to stabilise their accounts under the new system.
Gambling tax was increased to generate additional revenue for the country, initially expected to be around €200 million a year between 2025 and 2028.
Despite government-commissioned research warning it will push licensed operators out of the market, the Conservatives went ahead with the changes regardless.
It has only driven more bettors outside of the regulated field and black market gambling in the Netherlands has been on the rise ever since.
Dutch Gambling Reform’s Bumpy Ride Continues
Last October, the Netherlands rolled out the Responsible Gaming Policy and Gambling Limits Regulation to promote safer gambling habits but it hasn’t been a smooth ride.
A net deposit limit of €700 per month was introduced (€300 for young adults aged 18-25) and if bettors want to increase that mark, they need to provide proof of sufficient income to online casinos.
In July 2023, untargeted gambling advertising was banned through most media channels such as television, radio, newspapers and magazines before being outlawed in public places shortly after.
There is a ban on gambling sponsorship for sports clubs and competitions in the Netherlands too. In a positive light for the government, the average monthly loss per consumer has decreased from €116 to €80 in the eight months since the new rules were established.
Joe Lyons is a betting industry writer for GamblingIndustryNews with years of experience on reputable gambling websites. Joe specialises in long form content in the world of sports betting and gambling. Joe is recognised as an expert in sports fields such as horse racing, soccer, NFL and NBA.
