Holland Casino CFO Ruud Bergervoet said the planned increase in gambling tax in the Netherlands leaves the land-based operator in a “vulnerable” position, despite reporting year-on-year growth during the first half of 2025.
The Dutch gambling tax hike is being implemented in two phases. An initial increase from 30.5% of gross gaming revenue (GGR) to 34.2% came into effect on 1 January 2025. This will rise again to 37.8% of GGR from 1 January 2026.
Holland Casino already faced the initial rise during the first six months of 2025. However, with the secondary increase looming, Bergervoet voiced his concerns as to how this might impact the operator.
He flagged how, if the 37.8% rate had been in place for H1, it would have cut its profit for the period. At the current rate of 34.2%, this incurred an additional €13.5 million in costs during H1.
“The financial pressure remains high, especially considering the planned second increase in gaming tax in 2026,” Bergervoet said. “If the rate had already been at 37.8%, we would have closed the first half of the year with a profit of €1.1 million, or a loss of €5.5 million if we didn’t have the one-time revenue from sales.
“This shows how vulnerable we are, despite all our efforts so far.”
Holland Casino benefits from double property sale
The one-time revenue Bergervoet referred to was the sale of two properties. Holland Casino generated €8.7 million from the sale of a location in Zandvoort, as well as €2.7 million from selling its former casino in Groningen.
This double sale, the operator said, resulted in an increase in profit of €6.6 million.
As for its wider performance in H1, Holland Casino said revenue was slightly lower year-on-year at €390.9 million. In-store revenue grew slightly, although online revenue declined.
Land-based casino visits edged up 0.7% to 2.6 million during the half, with average spend per visit also slightly higher.
However, new player protection measures implemented last October hit online revenue.
Players are now prohibited from depositing more than €700 in a single calendar month. The limit is set lower at €300 for those aged between 18 and 25.
Costs-wise, Holland Casino managed to lower operating expenses by €30.1 million. This was the result of targeted savings, including a restructuring at the company’s head office.
As such, profit before corporate tax reached €14.2 million. This was a stark improvement from last year’s €3.5 million loss, helped by the property sales and cost-saving measures.
Initial tax rise creates €200 million black hole
While in theory the tax rise was aimed at generating more income for the government, this has so far not been the case.
In August, Dutch publication Financieele Dagblad reported figures from the Licensed Dutch Online Gambling Providers (VNLOK) trade body showed gross gaming revenue in H1 will be down 25% year-on-year.
As such, Kansspelautoriteit tax revenue will be at 83% of revenue collected from the same period in 2024. This was despite the higher tax rate coming into play in January this year.
The Ministry of Finance had expected to collect an additional €200 million annually between 2025 and 2028, it said in September when the tax hike was approved.
Holland Casino remains under “financial pressure” due to higher tax despite H1 growth.