The Dutch government has announced a phased increase in gambling taxes. It raises rates by 7.3 percentage points on gross gaming revenue or GGR. This is in spite of strong opposition from the industry.
The Dutch government revealed the decision as part of its autumn budget. It has drawn criticism from industry players who warn the hike could lead to operators exiting the market and even force state-owned Holland Casino to shutter branches or stop its online operations.
A gambling law expert at Kalff Katz & Franssen, Alan Littler voiced the concerns of the sector. Littler noted that the current government appears to be deaf to these concerns, it views gambling as a ready source of additional taxation revenues. He warns that many operators may struggle to remain profitable under the new tax regime.
From 30.5% to 37.8%, the tax hike is expected to generate an additional €202 million or $225 million annually from 2025 to 2028. This is as the government seeks to fill budget shortfalls.
However, Prime Minister Dick Schoof, emphasized that the primary point of the increase is to restrain gambling activities. Schoof said in a response to questions in parliament recently that they want to discourage gambling, let there be no misunderstanding about that – but this is one of the reasons to look at it in a different way.
In two phases, the government decided to implement the tax hike. This is partly to mitigate opposition from the sports industry, which relies heavily on gambling revenues. Yet, this phased approach has failed to ease industry concerns.
Littler stated that the state coffers have taken priority over consumers of gambling services in the Netherlands. He adds that the move could undermine the regulatory goals designed to protect consumers.
Willem van Oort, industry consultant, noted the lack of political support for gambling in the Netherlands. He says that it is clear gambling has few friends in the Netherlands.
