Increases in gambling taxes in the Netherlands have led to unpredictable consequences

In January 2025, the Netherlands increased its gambling tax from 30.5% to 34.2%. This had unpredictable consequences for the industry.

The initial goal was to increase state revenues, but this measure actually led to a decrease in revenues. The shortfall in tax revenues reached €30 million ($34.6 million) in the first half of 2025.

An impact assessment by the KSA (Dutch Gambling Authority) confirmed that the tax increase did not achieve the government’s revenue targets. The authority found that gross gaming revenue (GGR) declined in both the online and offline casino markets. This led to a decrease in tax revenues, despite the rate increase.

Bjorn Fuchs, chairman of the Dutch Online Casino Licensees Association (VNLOK), noted that the combination of higher taxes and strict regulations makes legal gambling less attractive to consumers. As a result, players are starting to switch to illegal casinos, where they are offered better payouts, higher bonuses, and so on. 

KSA Chairman Michel Groothuizen expressed concern about this situation: 

“The measures we have taken to provide greater protection for players have made the financial situation of providers more difficult. This has led to a decline in BSR for the entire market. As a result, gambling tax revenues have also declined.”

 

“A financially motivated measure such as gambling tax contradicts the political goal of providing greater protection for players. If we want to provide players with a safe gaming environment in the future, we need serious, responsible providers. This requires a financially stable, legal market.”

We have previously written about the state of the gambling market in the Netherlands.