Dutch Gambling Sector Calls for Tax Policy Review Amid Falling Revenue
Dutch Gambling Industry Highlights Impact of Tax Hikes on Revenue
Key players in the Netherlands’ gambling market are urging government officials to reconsider the existing tax framework as forecasts indicate a sharp drop in sector tax revenues for 2025. Industry representatives express concern that recent tax increases may have counterproductive outcomes.
Concerns Over Declining Tax Revenue in the Gambling Sector
Several organizations within the Dutch gambling industry, including the Netherlands Online Gambling Association (VNLOK), have communicated directly with parliament’s finance committee. In a joint letter, they cautioned that rising gambling taxes could be diminishing the overall tax intake, contrary to government expectations.
According to data from VNLOK, tax revenue from the gambling sector is projected to fall by approximately EUR 43.5 million in 2025 compared to 2024. This decline reflects a reduction in total tax payments from about EUR 322 million to EUR 288 million, based on figures collected from VNLOK members who represent a significant portion of the licensed online gambling market in the country.
The dip in tax income follows a series of tax hikes under the national fiscal strategy, raising the gross gambling revenue tax from 30.5% to 34.2% at the start of 2025 and again to 37.8% in 2026. While these measures were intended to increase government revenue, industry groups argue that they have instead weakened the regulated gambling market.
Tax Pressure Drives Players Toward Illegal Gambling Options
Representatives of the sector warn that the heavier tax burden is encouraging players to migrate to unlicensed gambling websites. Data highlighted in the letter shows that illegal online gambling spending reached EUR 617 million in the first half of 2025, surpassing the EUR 600 million spent on legal platforms. Since these unregulated operators do not comply with local laws or contribute taxes, this shift has led to reduced government earnings and diminished protections for consumers.
The Dutch gambling regulator, Kansspelautoriteit, has acknowledged that the increased taxes did not yield the anticipated financial benefits and has observed a significant revenue decline following operators’ adjustments to cope with the tax rise.
Additionally, industry groups stress that the negative effects extend beyond government revenue. Contributions funded by gambling profits for sports and charitable activities have suffered. It is estimated that each one percentage point rise in gambling tax could result in a reduction of about EUR 2.5 million in support to sports organizations, with the total shortfall expected between EUR 12.5 million and EUR 15 million.
Calls for Comprehensive Review and Parliamentary Oversight
The stakeholders are urging the government to conduct an official assessment of the tax policy changes and share the results with parliament by mid-2026. They emphasize that future policy decisions must carefully consider the impact of tax rates on illegal gambling activity, consumer safeguards, and public funding derived from gambling revenues.
This appeal comes ahead of planned parliamentary discussions on gambling taxation set for March, where lawmakers intend to evaluate the current regulatory framework’s effectiveness.
