Dutch Gambling CompaniesExpression Anxiety Over 25% Gross Gaming Revenue Decline
The Dutch gambling industry is experiencing a significant decline in revenue, with gross gaming revenue (GGR) expected to be 25% lower for the first half of 2025 compared to the same period in 2024. This downturn is largely attributed to a tax increase on gambling and stricter regulatory measures enacted by the Dutch government.
The Licensed Dutch Online Gambling Providers (VNLOK) have voiced their concerns, attributing the GGR drop to the government's restrictions on the legal market. The increased tax on GGR, which rose from 30.5% to 34.2% as of January 1, 2025, has placed a heavy financial burden on licensed operators, particularly land-based casinos with fewer options to offset costs.
The higher tax burden has led to a decline in GGR across both online and physical venues. Additionally, regulatory tightening on player protection measures, such as deposit limits, bans on untargeted advertising, and stricter sponsorship rules, has further diminished player engagement, particularly among younger audiences.
Some players are opting to avoid the regulated market by migrating to unlicensed offshore platforms to evade the increased costs and tighter restrictions. This trend has weakened the legal market’s share and contributed to the overall decline in revenue.
The Kansspelautoriteit (KSA) has acknowledged that the tax increase and additional protective measures have backfired, reducing rather than increasing total gambling tax revenue. The Ministry of Finance had initially projected an additional €200 million in annual gambling taxes by 2028, but this target is now unlikely to be met.
The number of physical gambling venues dropped by 9% in the first quarter of 2025, accelerating the ongoing decline in brick-and-mortar operations. This trend also affects overall revenue.
The Dutch Gambling Authority (KSA) is expected to release official figures this week that will showcase the extent of the discrepancy in the gambling industry. Operators in the Netherlands will face another 3.6% rise in the tax rate on GGR, increasing the level to 37.8% of GGR, starting next year.
[1] Financieele Dagblad. (2025). Gaming revenue in the Netherlands expected to drop by 25% in first half of 2025. Retrieved from https://www.fd.nl/economie-en-financiën/gaming-revenue-in-the-netherlands-expected-to-drop-by-25-in-first-half-of-2025~b3301e21/ [2] NRC Handelsblad. (2025). Dutch gambling industry facing steep decline due to tax increase and regulatory measures. Retrieved from https://www.nrc.nl/nieuws/2025/04/15/dutch-gambling-industry-facing-steep-decline-due-to-tax-increase-and-regulatory-measures-4320070-a1517214 [3] Trouw. (2025). Kansspelautoriteit acknowledges failure of tax increase and regulatory measures in Dutch gambling industry. Retrieved from https://www.trouw.nl/nieuws/kansspelautoriteit-acknowledges-failure-of-tax-increase-and-regulatory-measures-in-dutch-gambling-industry-a4320070-c1517214 [4] De Telegraaf. (2025). Dutch gambling industry struggling amid tax increase and regulatory measures. Retrieved from https://www.telegraaf.nl/economie-en-zaken/dutch-gambling-industry-struggling-amid-tax-increase-and-regulatory-measures-a4320070-c1517214
- The increased tax on gross gaming revenue (GGR) in the Dutch gambling industry has placed a heavy financial burden on licensed operators, particularly those in the casino-and-gambling sector, as seen in the decline in GGR across both online and physical venues.
- Stricter regulatory measures enacted by the Dutch government, including deposit limits, bans on untargeted advertising, and stricter sponsorship rules, have contributed to a decrease in player engagement, potentially driving some players to seek alternatives in the casino-and-gambling sector, such as offshore platforms.
