The recent increase in gambling taxes in the Netherlands has generated significantly lower revenue than the government anticipated, according to a joint report by the Ministry of Finance and the gambling regulator, Kansspelautoriteit (KSA). The report notes that changes in regulations and market trends have adversely impacted tax revenues from 2024 through early 2026.
The tax hikes were implemented in two stages, first raising the rate from 30.5% to 34.2% on January 1, 2025, followed by a further increase to 37.8% on January 1, 2026. The Treasury had expected these changes to produce an additional €108 million ($122.6 million) in 2025 and €216 million in 2026. In reality, the extra revenue amounted to approximately €2 million in 2025 and an estimated €57 million in 2026 compared to 2024.
One key factor identified by the report is a shrinking tax base, although it notes that specifically isolating the impact of the tax increase from other concurrent market changes is challenging. The tax is assessed on the sector's gross gaming revenue (GGR), which has been affected by a variety of factors, including new player-protection regulations introduced in October 2024. These rules set monthly net-deposit limits at €300 for younger adults and €700 for those aged 24 and above.
Furthermore, restrictions on advertising and sponsorship, which began on July 1, 2024, have limited marketing opportunities—banning sponsorship of television programs and sports teams starting on July 1, 2025. Market dynamics also played a role, with a decline in revenues following the UEFA Euro 2024 and ongoing regulatory scrutiny creating uncertainty in the sector. While these harm-reduction measures aim to protect consumers, they have also contributed to a decrease in taxable gambling volume.
Some physical operators have had to close venues or restructure their businesses, citing the tax increase as a contributing factor to reduced operating margins. KSA’s 2025 annual report further indicates a drop in market share for licensed operators.
The tax increase has notably impacted government-operated entities like Holland Casino and Nederlandse Loterij. Holland Casino's profits before corporate tax fell by about €27 million in 2025 and €54 million in 2026 as a result of the tax hikes. Meanwhile, Nederlandse Loterij projected decreases in corporate tax, statutory levies, and profits of around €16 million in 2025 and roughly €34 million in 2026, which partly offset the additional gambling tax revenue.
Additionally, visits to casinos and gaming halls dropped by around 11% year-on-year from Q1 2025 to Q1 2026, with fewer gaming halls also recorded. Operators have acknowledged that tax increases contributed to these venue closures. Nevertheless, contributions from licensed operators to charities and sports remained mostly stable between 2024 and 2025, with charitable payments rising slightly by 1.8% and sports contributions decreasing by 3.6%. The report found no substantial evidence that the initial tax hike significantly impacted charitable donations.
