The Netherlands’ decision to raise gambling tax from 30.5% to 34.2% in January 2025 is producing unintended outcomes, according to recent industry and regulatory data.
Revenue Falls Despite Higher Tax Rate
Instead of increasing government income, the new tax structure has caused a €30 million shortfall in tax revenues during the first half of 2025, compared to the same period in 2024. The Netherlands Gambling Authority (KSA) confirmed that gross gaming revenue (GGR) fell across both land-based and online markets, leading to reduced collections despite the higher rate.
Stricter Rules Push Players to Illegal Sites
VNLOK chairman Björn Fuchs criticized the policy’s effects, saying that higher taxes and tighter regulations have made legal gambling less appealing. As a result, many Dutch players have shifted to illegal platforms, which offer higher bonuses and more attractive payouts. Alarmingly, about 50% of online gambling spend now goes through unlicensed operators, which offer no player protection or oversight.
Land-Based Casinos Hit Hard
The impact is especially severe in the land-based sector, where the number of physical gaming locations dropped 9% in Q1 2025 alone—a sharper decline than the previous average of 6% per year between 2020 and 2025. Online operators have fared slightly better due to their ability to adjust payouts and reduce costs.
KSA and VNLOK Urge Reassessment
KSA Chairman Michel Groothuizen voiced concern:
“Tax-driven measures are at odds with our goal to protect players. A sustainable, legal market needs financially healthy, responsible operators.”
VNLOK is now urging the government to freeze the tax at 34.2%, while it evaluates the impact and works on more effective solutions to tackle illegal gambling.
