Dutch Government Confirms Two-Phase Gambling Tax Hike

In a move set to reshape the gambling landscape, the Dutch government has confirmed a substantial increase in gambling tax for operators, effective from 2025.

Under the newly proposed system, the gambling tax rate will rise from the current 30.5% to 34.2% in 2025, followed by a second increase to 37.8% in 2026. This decision, announced by Finance Minister Eelco Heinen and Prime Minister Dick Schoof, aims to generate more revenue for the state while giving gambling operators time to adjust to the significant financial impact. Meanwhile, the existing tax on customer winnings exceeding €449 will be scrapped.

The phased approach seeks to alleviate the pressure on operators, but it has still sparked concerns within the industry. Both Nederlandse Loterij and Holland Casino have voiced their opposition to the increase. The Nederlandse Loterij, which funds the Netherlands Olympic Committee and amateur sports, argued that its “soft gambling” vertical should be exempt. Holland Casino warned that it may have to implement aggressive customer acquisition campaigns to mitigate the financial impact, which could lead to unintended consequences.

International operators like Flutter Entertainment have already started reacting to the new tax regime. Flutter announced that its Tombola.nl bingo brand will exit the Dutch market due to the impending tax hikes and newly enforced deposit limits, which come into effect on October 1.

Eric Konings, interim general secretary of the Netherlands Online Gambling Association (NOGA), criticized the tax hike, urging the government to consider the broader impact. He cautioned that this move might lead to lower tax revenues and inadvertently increase illegal gambling activities.

Konings noted, “This will harm the general objectives of Dutch gambling policy, which focus on consumer protection and the prevention of fraud, crime, and gambling addiction. If this policy is abandoned, the social costs will rise, leading to additional financial setbacks.”

The Dutch government’s decision to implement a phased gambling tax hike represents a challenge for operators, both domestic and international. While the tax aims to raise revenue, concerns about increased illegal gambling and adverse impacts on the industry have sparked significant debate. As the changes come into effect in 2025, all eyes will be on how the Dutch gambling market adapts to these new pressures.