Netherlands will raise the gambling tax rate from 30.5% to 34.2% starting from 2025, originally intended to increase national revenue, but the result was contrary to expectations. The latest industry data shows that this policy has led to a decline in revenue in the legal market, a decrease rather than an increase in tax revenue, and has prompted a large number of players to turn to illegal platforms.
According to the assessment released by the Netherlands Gambling Authority (KSA), national tax revenue in the first half of 2025 decreased by about 30 million euros (34.6 million US dollars) compared to the same period in 2024. This is because the total revenue from both online and offline gambling has significantly declined, although the tax rate has increased, the actual government tax revenue has decreased.
Björn Fuchs, chairman of the Licensed Online Operators Association (VNLOK), pointed out that the increased tax burden and stricter regulations have jointly weakened the attractiveness of legal gambling to players, while illegal casinos have taken the opportunity to expand, offering higher bonuses and returns, attracting nearly half of the online betting funds to unlicensed platforms.
The physical gambling industry was the most severely affected. Data shows that in the first quarter of 2025, the number of gambling venues decreased by 9% quarter-on-quarter, far higher than the average annual decline of 6% over the past five years. In contrast, online operators, with the ability to flexibly adjust expenses and costs, showed greater resilience.
Michel Groothuizen, chairman of the KSA, expressed concern about this. He pointed out that the policies originally formulated to enhance player protection have instead put financial pressure on legal operators, disrupted market balance, and ultimately harmed the sustainability of the entire industry.
VNLOK calls on the government to suspend further tax increases, maintain the current tax rate of 34.2%, prioritize research on the actual impact of tax policies on the market, and formulate more effective measures to curb illegal gambling, ensuring that players can bet in a safe and regulated environment.
