Gambling operators in the Netherlands are to be hit with a two-tier tax hike with an increase from 30.5 per cent to 34.2 per cent next year with another increase to 37.8 per cent in 2026.
Folkert Idsinga, State Secretary for Tax Affairs and the Tax Administration, presented the 2025 Tax Plan to the House of Representatives. She said: “This government regards healthy public finances as crucial and will be implementing a number of measures set out in the framework coalition agreement and additional measures to absorb a number of financial setbacks. For example, we will increase the tax on games of chance in two steps, to 34.2 per cent in 2025 and 37.8 per cent in 2026. This is the tax that people pay on winnings of more than €449 from a lottery or casino in the Netherlands.”
State-owned casino monopolist Holland Casino had already slammed the tax increase as ‘irresponsible.’
Speaking last month as the operator presented its first half results,
CEO Petra de Ruiter said: “Our total tax burden will then be almost 50 per cent. This means that black figures are not possible. We are going to make a big loss. Unlike supermarkets, we are not able to pass on price increases properly. The only alternative is that we take very undesirable measures such as aggressive campaigns to attract new guests, encouraging people to spend much more or by significantly reducing the prize money. These measures are unacceptable to Holland Casino and irresponsible from the point of view of government policy on gambling. In addition, the planned investments in our prevention policy will also come under pressure. It is crucial for our financial health that there are no further substantial cost increases now. Only then can we avoid ending up in a loss-making situation.”
Three gaming associations, NOGA, VAN Kansspelen and VNLOK, united to voice their concern.
“The regulated gaming sector (represented by trade associations NOGA, VAN Kansspelen and VNLOK) reacts with great concern to the government’s intention to increase the gambling tax. In view of the phased introduction, the government shows some recognition of the risks of counterproductive effects on gambling policy objectives and the public purse, but does not allay concerns about the continued existence of regulated gambling offerings. This underlines the need to map the effects of the gambling tax, in conjunction with other announced policy changes, ongoing evaluations and previous parliamentary decisions, more fundamentally and carefully.
“All the facts and figures indicate that the tax increase will lead to a further depletion of the regulated supply. Tax revenues will fall as a result. At the same time, an increase in illegal and therefore riskier gambling is to be expected. This is to the detriment of the general policy objectives of the Dutch gambling policy, which specifically focus on consumer protection and the prevention of fraud, crime and gambling addiction. If this is abandoned, social costs will increase and therefore mean additional financial setbacks.
“The members of NOGA, VAN Kansspelen and VNLOK call on the government to bring the financial targets in line with the gambling policy, and to discuss this with the parties involved. In this context, the social importance of the safe and regulated range of games of chance on the one hand and the income for the state treasury on the other hand will have to be balanced with each other. For these purposes, it is essential that the proper exploitation of legal supply remains possible, and it is precisely this that will come under serious further pressure as a result of the proposed tax increase.”
Flutter Entertainment has already confirmed its Dutch-entity tombola would be ceasing operations in the country.
Flutter stated: “Tombola can confirm that it is to cease operations in the Netherlands effective from 1st October 2024. Despite making significant marketing investment over the last three years of activity, we have been unable to achieve a level of meaningful market share, which is a core objective of Flutter’s brand strategy in all markets in which it operates. The conclusion is that resources can be better deployed in larger or new markets. In addition, stricter regulations and gambling tax increases are also on the way. All these reasons have played a role in closing the doors permanently.”