Decline in Gambling Tax Income Netherlands 2025
The Dutch gambling market is facing challenges in 2025, with a significant decline in tax revenue for the Dutch government. This decline is primarily due to a tax hike on gambling, which increased the gross gaming revenue (GGR) tax rate from 21.5% to 30%.
This tax increase has put more financial pressure on operators, reducing the revenue they have left to cover their costs. According to the Kansspelautoriteit (KSA) figures, online operators now have 12% less revenue due to this tax increase.
This higher tax burden is impacting the legal gambling market. Operators may face reduced profitability, potential scaling back of operations, or increased costs passed on to consumers. This could affect player participation levels and create a more challenging environment for legal operators. The situation may even encourage some players to seek alternatives outside the regulated market or reduce overall gambling activity.
The Netherlands Gambling Authority (KSA) has confirmed that the targets for tax revenue are unlikely to be achieved. Brick-and-mortar businesses, too, face higher fixed costs.
VNLOK Chairman Björn Fuchs has warned that heavy taxation combined with stringent rules is making regulated gambling less attractive. High-spending players, in particular, appear to prefer illegal sites.
Industry experts blame the downturn on an expanding set of regulatory restrictions driving players toward unlicensed gambling platforms. This trend may undermine the entire legal system, as warned by Fuchs, who believes excessive regulation may be undermining the system.
The decline in tax revenue is not just affecting the online gambling sector. The land-based gambling sector is also feeling the impact, with a 7% drop in turnover compared to 2024. Operators are cutting back on bonuses and payout percentages to offset the financial pressure caused by the tax increase.
The gross gaming revenue (GGR) reported by licensed online operators in the first half of 2025 dropped over 25% compared to the same period in 2024. If the current trend persists, gambling tax revenue for 2025 is projected to fall to around €800 million - down from the €1 billion collected in 2024.
Secretary for Legal Protection Teun Struycken has urged a coordinated EU crackdown on illicit gambling platforms. VAN Kansspelen director Daan Keij has expressed concerns that the situation may worsen as long-term closures of physical venues haven't yet been factored in.
It was revealed earlier in 2025 that nearly half of the country's online gambling revenue now flows to unlicensed operators. A KPMG report commissioned by VAN Kansspelen found a 7% drop in turnover in the land-based gambling sector compared to 2024.
The gambling tax was raised from 30.5% to 34.2% in 2025, with another increase to 37.8% scheduled for 2026. However, tax income from these operators has fallen to just 83% of last year's level, despite the increased tax rate.
This news comes as the Dutch government attempts to regulate the gambling industry more strictly to protect players. However, Fuchs has criticized the assumption that stricter regulation automatically enhances player protection. This debate highlights the complexities of balancing player protection with the financial health of the gambling industry.
The tax increase on the gambling industry, specifically in the finance sector, has caused more financial strain for operators, with online operators reporting a 12% decrease in revenue. The Dutch gambling market, consisting of both online and land-based sectors, has seen a significant decline in tax revenue due to this financial pressure on operators.
Industry experts have warned that the increasing regulations and high taxation rates may drive players towards unlicensed gambling platforms, potentially undermining the entire legal system, as suggested by VNLOK Chairman Björn Fuchs.
