The Netherlands Gambling Authority (Kansspelautoriteit or KSA) has admitted that its plans to hike gambling taxes aren’t working out as planned. The KSA had increased gambling tax from January 1, 2025, to 34.2% from 30.5%, with the intention to “increase government revenue.”
However, gambling income, or gross game result (BSR), has fallen in response to the increase. With a higher percentage taken out of winnings, it appears that Dutch gamblers simply decreased their playing, resulting in tax revenues overall falling due to the decision.
“The measures we have taken to offer players more protection have made it more difficult for providers. This has led to a decline in the BSR for the entire market.” – Michel Groothuizen, KSA chairman
This has stung both physical, land-based gaming and online gambling. Particularly brick-and-mortar locations, which the Netherlands watchdog says it has seen an “accelerated decline”, with a 9% drop from “the last quarter of 2024.” Online gambling hasn’t been affected as badly, weathering the drop through its flexibility.
As land-based venues will need to adhere to stricter rules, it makes it harder to adjust, which the KSA admits “the possibilities are limited.” Online platforms can simply change figures as needed, potentially increasing profits despite the increased tax.
The report itself reveals that 96% of outlets reported back to the watchdog with data. However, while conducting the research, it was found that since the COVID pandemic, income has declined. It describes financial difficulties, including a 2020 ban on smoking in casinos, as one of the factors for a drop in overall revenue.
Some operators cited online platforms gaining prevalence, while increased costs for staff and the “implementation of the Central Register for Exclusion from Gaming (CRUKS)”. This is the program that requires checks to ensure a person isn’t banned from gambling.
Speaking in the press release, Michel Groothuizen, chairman of the KSA, said:
“The measures we have taken to offer players more protection have made it more difficult for providers. This has led to a decline in the BSR for the entire market.
“This also reduced the income from the gambling tax. The KSA has already indicated that this would be the effect. A financially driven measure as a gaming tax, is at odds with the policy objective of offering players more protection.
“If we want to be able to offer players a protected gaming environment in the future, it assumes serious, responsible providers. A financially sound legal market is essential for this.”
Featured image: Composite image with Kansspelautoriteit logo
