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The Dutch Government has confirmed that it will not move forward with plans to privatize the national lottery, Nederlandse Loterij, and state-owned Holland Casino.
Lawmakers first brought up the idea of privatization in a parliamentary committee debate last November, with plans to hand over Nederlandse Loterij to a private entity. However, State Secretary for Taxation Tjebbe van Oostenbruggen and State Secretary for Legal Protection Teun Struycken announced in the House of Representatives on Tuesday (May 13) that those plans were no longer ‘feasible or proportionate.’
In a statement to parliament about the decision, Van Oostenbruggen emphasized that the change was currently not in line with the government’s vision on gambling. A core part of this vision is to focus on the emerging online gaming market in the country, while letting the national lottery rest.
He also argued that privatizing the lottery would mean lots of amendments to current regulations and legislation, which could leave players at risk of gambling harm. The government believes that keeping Nederlandse Loterij as a state entity offers a responsible and controlled alternative to private gaming companies.
“The government will retain the Nederlandse Loterij as a state-owned company for the time being,” Van Oostenbruggen said. “Citizens will retain access to a party that is structured differently from commercial gambling providers.
“In doing so, the government also wants to take responsibility in a market that clearly also has negative aspects and ensure long-term stability.”
Privatization Dreams Not Yet Over
While the current climate may not favor privatization, Van Oostenbruggen hinted in his letter to parliament that the government could revisit the idea in the future. However, significant concerns about privatization remain.
A primary issue is the potential for commercial operators to prioritize profit over the public good. This could lead to aggressive marketing strategies and a tendency to bend regulatory rules. Van Oostenbruggen pointed out that private companies often have a greater motivation to push the boundaries of laws due to their commercial interests.
He emphasized that any future decisions regarding the state lottery should align with the already existing vision set by the responsible department. This includes taking into account the recommendations put forth during Struycken’s presentation to parliament earlier this year, which focused on reforming online gambling regulations with an increased emphasis on player protection.
Struycken proposed raising the minimum age for high-risk gambling activities, like online slots, to 21, alongside stricter advertising rules for operators. The minister announced that the updated Gambling Act will be ready before the end of 2025.
Holland Casino To Remain Under State Control Too
Van Oostenbruggen’s letter also confirmed that Hooland Casino will not be privatized, despite earlier considerations. Instead, discussions are underway to address the financial strain placed on the casino by recent gambling tax increases. The state secretary emphasized the importance of ensuring the casino’s continued operation in light of these challenges.
Holland Casino is currently navigating a difficult financial landscape, worsened by the COVID-19 pandemic and rising operational costs, including a significant tax hike that took effect in January.
A further increase is set for January 2026, raising the gambling tax to 37.8%. This has prompted the casino’s leadership to express concerns about profitability, with CEO Petra de Ruiter describing the latest tax rise as potentially ‘irresponsible.’
In response, the government has instructed Holland Casino to devise a comprehensive plan to address both financial and operational challenges. “Holland Casino will have to develop new measures in the coming period in order to remain viable in the long term,” Van Oostenbruggen stated.
Source: iGamingBusiness
