Dutch Tax Hike Forces JVH Gaming to Close Casinos, Cut Jobs

The Dutch gambling industry faces a seismic shift as JVH Gaming announces closures and job cuts amidst soaring taxes.

With brands like Jack’s Casino and Flash Casino affected, the ripple effects are set to transform the industry.

Explore how rising costs, tax hikes, and shifting regulations are forcing operators to rethink their future strategies.

Learn about the far-reaching consequences of the Dutch government’s phased tax increases on the regulated gambling market.

Dutch Gambling Tax Hike Forces JVH Gaming to Restructure, Close Casinos

Key Points:

1. JVH Gaming to Close 25 Locations: Rising gambling taxes and operational costs force JVH Gaming to shut down 25 outlets and phase out Flamingo Casino.
2. Industry Faces Ripple Effects: Other operators, like Fair Play Casino and Holland Casino, are also scaling back due to financial pressures.
3. Concerns Over Illegal Gambling: Critics warn tax hikes may push players to unregulated markets, undermining consumer protection and government revenues.

Dutch Gambling Tax Hike Prompts JVH Gaming to Close Casinos, Slash Jobs

The Dutch gambling industry is under strain as JVH Gaming, operator of well-known brands like Jack’s Casino, announces significant downsizing. Facing rising taxes and escalating operational costs, the company plans to close 25 locations and eliminate the Flamingo Casino brand entirely.

This restructuring marks a sobering moment for one of the Netherlands’ largest private gambling operators. The company also intends to reduce its headquarters’ workforce, responding to financial challenges stemming from the government’s phased gambling tax increase.

Mounting Pressures on the Gambling Industry

The Dutch government’s gambling tax hike is central to this crisis. Introduced to generate €200 million annually, the tax rate, currently at 30.5%, will rise to 34.2% in 2025 and peak at 37.8% by 2026. While staggered implementation allows operators time to adjust, the effects are already visible.

JVH Gaming CEO Erik Olders called the tax increase a “bitter pill” and cited mounting operational costs—rent, energy, wages—compounded by the lingering impacts of the Covid-19 pandemic.

Despite reporting €184 million in sales last year after taxes, the company cannot sustain its current structure. The closures will primarily impact locations under the Flash Casino brand, with Flamingo Casino disappearing entirely from the market.

A Sector-Wide Struggle

JVH Gaming isn’t alone. Earlier this year, Fair Play Casino, operated by Janshen-Hahnraths Group, announced it would cut 100 jobs due to financial losses. Meanwhile, Holland Casino Group, the state-owned operator, is preparing to shutter its historic Zandvoort location by 2024.

Trade associations, including the Dutch Online Gambling Association, have voiced concerns that tax hikes could erode the regulated gambling market. As costs rise, consumers may turn to unlicensed platforms, creating risks for player protection and enabling illegal activities.

Research commissioned by the Dutch government corroborates these fears. It suggests that higher taxes could reduce licensee participation, destabilize the regulated market, and increase societal costs tied to fraud and addiction.

The Legacy of Dutch Gambling Regulation

The Netherlands has a long history with gambling, dating back centuries. In 1976, the government established Holland Casino, granting it monopoly control over land-based casinos.

However, with the rise of online gambling in the late 1990s, unregulated platforms flourished, prompting the government to modernize its laws. In 2021, the Remote Gambling Act introduced a framework for legal online gambling, emphasizing consumer protection and responsible gaming.

Despite this progress, some lawmakers have called for an outright ban on online gambling, underscoring ongoing tensions within the regulatory landscape.

JVH Gaming’s downsizing highlights the precarious balance between taxation, regulation, and industry sustainability. While the Dutch government aims to bolster its treasury, the unintended consequences of higher taxes—market erosion, job losses, and the rise of unregulated gambling—cannot be ignored.

As Flamingo Casino exits the scene and more closures loom, the Dutch gambling industry faces a pivotal moment. Policymakers must weigh short-term financial gains against long-term industry health to ensure the regulated market remains viable and competitive.

By tackling these challenges collaboratively, operators, regulators, and lawmakers can work toward a more sustainable future for the Dutch gambling industry.