The Netherlands’ recent gambling tax increases have generated significantly less revenue than the government projected, according to a joint monitoring report released by the Ministry of Finance and the Kansspelautoriteit (KSA).
The report found that changes in market conditions and new gambling regulations reduced the taxable gaming base, limiting the impact of higher tax rates.
Higher Tax Rates Deliver Lower Returns
The Dutch government implemented the gambling tax increase in two stages.
The tax rate rose from 30.5% to 34.2% on January 1, 2025, before increasing again to 37.8% on January 1, 2026.
Authorities initially expected the increases to generate approximately €108 million ($122.6 million) in additional revenue during 2025 and another €216 million in 2026.
Actual results fell well below those forecasts. Additional tax revenue reached only about €2 million in 2025 and is estimated at approximately €57 million in 2026 compared with 2024 levels.
Consumer Protection Measures Reduced Tax Base
The report attributed much of the shortfall to a decline in gross gaming revenue (GGR), which serves as the basis for gambling tax calculations.
Several regulatory measures contributed to lower gaming activity, including:
- Monthly net deposit limits introduced in October 2024
- Restrictions on gambling advertising and sponsorship
- The fading impact of the UEFA Euro 2024 betting surge
- Ongoing regulatory uncertainty across the market
While these measures strengthened consumer protection, they also reduced taxable gambling revenue.
Land-Based Casinos Face Ongoing Pressure
The higher tax burden has also affected land-based casino operators.
Some businesses have restructured or closed venues, citing increased taxation as a factor reducing operating margins.
Casino and gaming hall visits declined by approximately 11% between the first quarter of 2025 and the first quarter of 2026, while the number of gaming halls also continued to fall.
State-Owned Operators Report Lower Profits
The report highlighted the financial impact on the Netherlands’ state-controlled gaming operators.
Holland Casino reported that the tax increases reduced its profits before corporate tax by approximately €27 million in 2025 and €54 million in 2026.
Nederlandse Loterij also expects lower profits, corporate tax payments, and statutory levies totaling around €16 million in 2025 and €34 million in 2026.
These reductions partially offset the additional gambling tax revenue collected by the government.
Charitable Contributions Remain Stable
Despite weaker industry performance, contributions from licensed gambling operators to charities and sports organizations remained relatively stable.
Payments to charitable organizations increased by 1.8% between 2024 and 2025, while funding for sports declined slightly by 3.6%.
The report concluded that there was no clear evidence the initial gambling tax increase had materially affected charitable contributions during the reporting period.
