The newly established conservative coalition government in the Netherlands has confirmed a two-step plan to increase the income tax on the gambling industry. Following the Prinsjesdag parade, Finance Minister Eelco Heinen and Prime Minister Dick Schoof unveiled the 2025 budget, which will raise the gambling tax from 30.5% to 37.8%.
The increase in the tax rate will be phased, rising to 34.2% in 2025 and reaching 37.8% in 2026, to allow time for "industry adjustment." The budget emphasizes the importance of "healthy public finances" and outlines this two-step tax increase plan to address financial adversities.
This significant tax hike will end the taxation of customer bonuses over 449 euros, impacting the state-owned Holland Casino, which will need to raise an additional 100 million euros. Flutter Entertainment has already announced that it will exit its Tombola.nl brand due to the upcoming changes.
The Dutch Lottery (Nederlandse Loterij) has expressed concerns about the impact of this tax adjustment on sports funding, calling for a "specific distinction" between high-risk and low-risk gambling in terms of taxation. Trade organizations NOGA and VNLOK have also expressed concerns, with NOGA's interim secretary Eric Konings warning that this could lead to an increase in illegal gambling, stating:
"The tax increase will lead to a further reduction in regulated supply... Social costs will rise, bringing additional financial difficulties."
