Dutch Party Urges Government to Sell Holland Casino

Dutch Party Calls for Privatization of Holland Casino Amid Financial Struggles

The Christian Democratic Appeal (CDA) has called on the Dutch government to sell Holland Casino, arguing that the state-owned operator cannot remain competitive under current market conditions. As the Dutch gambling landscape evolves with increased competition and regulatory pressures, the CDA believes that privatization is the best path forward for the iconic casino operator.

CDA Pushes for State Withdrawal from Gambling Operations

The CDA, one of the Netherlands’ prominent political parties, is advocating for a complete sell-off of Holland Casino, the state-owned operator that runs 14 land-based venues across the country. The party also supports a broader ban on online gambling, arguing that state involvement in the gambling sector is increasingly untenable.

CDA MP Inge van Dijk has been vocal about the need for the government to divest its stake in Holland Casino, urging Finance Minister Eelco Heinen and Tax Affairs Secretary Folkert Idsinga to consider the sale. Van Dijk likened the current model to “mopping the floor while the tap is running,” suggesting that state ownership in a highly competitive market is unsustainable.

Holland Casino’s Declining Fortunes

Founded in 1976, Holland Casino was initially established to provide a safe, state-controlled gambling environment for Dutch citizens. Today, it operates 14 land-based casinos and has ventured into online gambling, following the opening of the regulated online market in October 2021. Despite these efforts, the company has struggled to maintain profitability amid fierce competition from private operators.

The financial performance of Holland Casino has been underwhelming, with the latest half-year results revealing a loss of €3.5 million, a stark contrast to the €17 million profit recorded during the same period last year. One of the primary challenges has been the rising gambling tax, which increased by 1% at the start of the year, costing the operator an additional €3.7 million. Looking ahead, Holland Casino faces even steeper financial hurdles, as the Dutch government plans to further increase the gambling tax from 30.5% to 37.8%.

Holland Casino’s Dire Warnings

Holland Casino’s director Petra de Ruiter expressed grave concerns over the impact of the impending tax hike, warning that the increased financial burden could push the company further into the red. De Ruiter highlighted that the combined tax and operational pressures would result in an unsustainable business model unless drastic measures are taken.

“Our total tax burden will then be almost 50%. This makes black figures impossible. We will make a significant loss. Unlike supermarkets, we cannot pass on price increases. The only alternative is that we will take very undesirable measures such as aggressive campaigns to recruit new guests, encouraging people to spend much more, or by significantly reducing prize money,” said De Ruiter.

These comments underscore the unsustainable position of a state-owned operator struggling to compete in a highly competitive and regulated market. The CDA’s push for privatization aims to address these challenges by freeing the operator from state constraints, allowing it to adapt more flexibly to market demands.

Broader Industry Implications

The call for privatization comes at a time when other state-owned gambling operators in Europe, like Finland’s Veikkaus, are also re-evaluating their business models in response to changing market dynamics. Veikkaus has announced contract negotiations with up to 620 employees, hinting at potential redundancies as it prepares for Finland’s transition to a multi-license market. These developments highlight the broader trend of state operators struggling to maintain competitiveness in liberalizing gambling markets.

A Critical Juncture for Holland Casino

The future of Holland Casino hangs in the balance as it faces mounting financial pressures and an increasingly competitive market. The CDA’s call for privatization reflects growing sentiment that state ownership is no longer viable in the rapidly evolving gambling landscape. As the Dutch government considers its options, the decision on whether to sell Holland Casino will not only shape the operator’s future but could also set a precedent for other state-owned gambling entities across Europe.