In a bold move, the Netherlands government has outlined its 2025 budget proposal, which includes a staggered increase in gambling taxes aimed at bolstering the national treasury. Under the new tax plan, the Ministry of Finance will raise the tax rate on gambling winnings from the current 30.5% to 34.2% in 2025, with a subsequent climb to 37.8% in 2026. This tax hike will specifically target winnings beyond €449 (approximately $476) from lotteries and casinos operating within the Dutch market. Netherlands Gambling Tax
The announcement has sent shockwaves through the gambling industry, leading to strong reactions from various operators and industry associations. The Nederlandse Online Gambling Association (NOGA), the Association of Gaming Operators in the Netherlands (VAN Kansspelen), and the Dutch Association of Lottery Providers (VNLOK) jointly expressed their deep concerns over the proposed tax increases. In a statement, they highlighted that while the government’s phased approach indicates an acknowledgment of potential adverse effects on gambling policies and revenue, it fails to reassure stakeholders about the long-term viability of regulated gambling.
“We react with great concern to the government’s intention to increase the gambling tax,” the associations stated. They emphasize that the significant rise in tax burdens could lead to a mass exodus of operators from the regulated market, resulting in reduced tax revenues and an uptick in illegal gambling activities. These outcomes are contrary to the Dutch government’s objectives of ensuring consumer protection and preventing gambling-related problems such as addiction, fraud, and crime.
Alarmingly, the organizations anticipate that these tax changes will drive some consumers toward unregulated and potentially dangerous platforms, creating a public health risk while posing a challenge to the established order aimed at safeguarding players.
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Earlier in the week, Flutter Entertainment—one of the largest gambling operators globally—announced its decision to exit the Dutch market by early next month, citing these tax increases as a key factor in their departure. The company remarked on its website that it would be more prudent to invest resources in larger or emerging markets rather than contend with the increasingly stringent regulations and tax burdens in the Netherlands.
Holland Casino, the state-owned gambling entity, previously warned about the ramifications of the expected tax hikes during its mid-year financial results announcement. Petra de Ruiter, CEO of Holland Casino, described the impending 7.3% increase as “irresponsible.” With the total tax burden potentially nearing 50%, De Ruiter cautioned that this financial pressure diminishes their operational viability, creating conditions where winning back customers could require ethically questionable measures or reduced prize payouts.
She voiced her concerns about the broader implications of this tax strategy, stating, “Unlike supermarkets, we are not able to pass on price increases properly. The planned investments in our prevention policy will also come under pressure.”
The associations representing operators stress the urgent need for the government to reconsider its financial objectives in the context of the overarching gambling policy. They called for a balanced dialogue between the state and industry stakeholders, ensuring that the goals of fostering a safe and regulated gambling environment do not sacrifice financial stability.
As the government moves forward with its budget plan, the fate of the Dutch gambling market hangs in the balance. Stakeholders from across the industry are left grappling with potentially significant changes that could reshape the landscape of legalized gambling in the Netherlands. The questions remain: Will the government heed the warning of industry leaders? And at what cost will these new tax policies come? Only time will reveal the true impact of these fiscal strategies on the regulated gaming sector and its ability to protect consumers.
