Dutch State Secretary for Taxation Eugène Heijnen has ruled out introducing a new policy to make up for an expected decline in online gambling revenue due to tax increases.
When questioned in parliament last week, Heijnen said no plans were in place to counteract the expected decline. According to Casino Nieuws, the minister told politicians that gambling tax earnings would be in line with expectations set out by KSA in a recent report.
“It is true that the estimate for revenue has been revised downwards this year,” Heijnen said. “This picture is broadly consistent with the expectations communicated by the KSA in a recent report.”
Revenue drop a possibility in the Netherlands
Regulator Kansspelautoriteit (KSA) released a report in August revealing the measure will likely result in a €40 million ($47 million) drop in iGaming revenue, in contrast to earlier forecasts of a €100 million rise in GGR for 2025.
This is due to a gambling tax hike in the Netherlands that is being implemented in two phases. An initial increase from 30.5% of GGR to 34.2% came into effect on 1 January 2025. This will increase further to 37.8% of GGR from 1 January 2026.
Similarly, August data from the Licensed Dutch Online Gambling Providers (VNLOK) trade body suggested the higher rate could severely impact tax income and cause a €200 million black hole in 2025. The report based this figure on GGR in the first half of 2025 being down 25% compared to last year.
VNLOK said the impact was due to several new restrictive measures enacted over the last year. These include bans on untargeted advertising and sponsorships, new deposit limits and the increased tax burden. It called for the government to act on this and revise the current tax framework.
The Ministry of Finance previously said it expected to collect an additional €200 million annually between 2025 and 2028 in gambling tax revenue, thanks to the increase in rates.
Dutch revenue shortfall ‘not a compensatory policy’
During the short debate in parliament, Heijnen acknowledged that gambling tax revenue is lagging behind, particularly in the online sector. He added this was due to tightening regulations but maintained laws would not be amended as a result.
“In accordance with budgetary rules, windfalls and shortfalls in tax revenue are reflected in the balance after policy is adopted,” he said. “Therefore, the revenue shortfall from this perspective is not a compensatory policy.”
Heijnen is new to the role of State Secretary for Taxation, having taken up the position in early September. He succeeded Tjebbe Van Oostenbruggen, who resigned at the end of August.
Van Oostenbruggen was one of several individuals to step down in the wake of Foreign Minister Caspar Veldkamp resigning over the decision to block sanctions against Israel because of the conflict in Palestine. Gambling minister Teun Struycken also left his role.
Tax minister Eugène Heijnen last week said the gambling revenue shortfall in 2025 is not a compensatory policy and no new measures to curb it would be enforced.