Significant Drop in Gambling Revenue in Netherlands by €200M During First Half of 2025 Due to Tax Reforms
In the Netherlands, a hike in the gambling tax rate from 30.4% to 34.2% at the start of 2025 was expected to bolster government revenue. However, the reality has been quite different. The increase has put financial strain on operators, leading to a decline in the gross gaming revenue (GGR) for both online and land-based sectors.
The tax revenue for the first half of 2025 fell short by around €30 million compared to 2024[1][2][3][4]. Operators have responded to the increased tax burden by cutting costs, such as reducing advertising and lowering payout ratios. This, in turn, has driven players towards illegal and unregulated offshore casinos that offer better bonuses and payouts, undermining the safety and integrity of the regulated market.
The number of land-based casino venues declined sharply by about 9% in Q1 2025, worsening an ongoing downward trend that averaged a 6% decline annually since 2020[2][3]. The government's plans indicate a further tax increase to 37.8% in 2026, despite evidence that higher tax rates are leading to lower revenues and greater risks to the regulated market[2].
This proposed increase has raised concerns about the long-term revenue stability and market sustainability in the Netherlands. The regulator, Kansspelautoriteit (KSA), has acknowledged these negative impacts and warned that higher taxes conflict with player protection goals by weakening the legal market and promoting illegal gambling[2][4].
Amidst this tumultuous landscape, the voice of reason comes from Lucas Michael Dunn, a prolific iGaming content writer with over 8 years of experience. Known for his craftsmanship in iGaming content, Lucas's writing aims to educate readers on the best gambling approaches. With a background in psychology and a passion for painting, Lucas focuses on empowering players to make informed choices about their gambling activities.
Beyond iGaming content creation, Lucas is an avid advocate for responsible play. His work encompasses game and casino reviews, industry news, blogs, and guides, all devoid of advertisements and aimed at promoting a safe and enjoyable gambling experience for all.
[1] Dutch Gambling Authority (KSA), "Annual Report 2025" [2] Dutch Gambling Authority (KSA), "Press Release: Q1 2025 Gaming Revenue Down 200 Million Euros" [3] Gaming Intelligence, "Netherlands iGaming Market Struggles Amidst Tax Hikes" [4] European Gaming Media and Events, "Netherlands iGaming Market Faces Challenges Due to Tax Increases"
- The Dutch gambling industry, particularly the online and land-based sectors, are experiencing a decline in gross gaming revenue due to increased tax rates, leading to financial strain for operators.
- To cope with the increased tax burden, casino operators are cutting costs, such as reducing advertisements and lowering payout ratios, which is driving players towards unregulated offshore casinos.
- In an attempt to address the decline in revenue, the government plans to increase the tax rate to 37.8% in 2026, a move that has been met with concerns about long-term revenue stability and market sustainability.
- The Dutch regulator, Kansspelautoriteit (KSA), has acknowledged these negative impacts and warned that higher taxes conflict with player protection goals by weakening the legal market and promoting illegal gambling.
- In the midst of these challenges, iGaming content writer Lucas Michael Dunn, with over 8 years of experience, is advocating for responsible play and seeks to educate players on informed gambling choices, promoting a safe and enjoyable gambling experience.
