for early access to the latest igaming videos!
and get the latest igaming news first!
As the Dutch government prepares for another rise in gambling taxes next year, early data indicates that the recent hike may not be delivering the financial boost it intended.
Earlier this year, the Netherlands raised its gambling tax rate from 30.5% to 34.2%. A further increase is scheduled for 2026, when the rate is set to climb to 37.8%. The goal behind these tax hikes was to boost state revenue by an estimated €202 million by 2028. However, the latest figures suggest the plan might be having unintended consequences.
According to data reported by Financieele Dagblad, citing figures from the newly merged gambling industry group VNLOK, the gross gambling revenue (GGR) in the regulated market dropped by 25% in the first half of 2025. If this trend continues, VNLOK estimates that the government will collect only about 83% of the gambling tax revenue it received in 2024.
This decline adds to concerns that the strategy may be counterproductive. The Dutch gambling regulator, Kansspelautoriteit (KSA), is expected to release a comprehensive impact report soon. However, it already noted in April that GGR had fallen by 10% during the second half of 2024—before the latest tax increase had even taken effect. That earlier drop was attributed primarily to the introduction of stricter deposit limits.
VNLOK believes that the combination of recent regulatory measures—including the increased tax rate, tighter deposit rules, and the upcoming ban on gambling sponsorships taking effect in July—is pushing more consumers toward unlicensed gambling sites. Operators in the legal market may be passing the heavier tax burden onto players, who in turn may seek more attractive terms with offshore or unregulated platforms.
This situation is not unique to the Netherlands. Other European countries have also moved to increase gambling taxes in recent years. Sweden, for instance, raised its gambling tax in 2024, while France introduced new tax frameworks for its regulated gambling sectors just last month.
Meanwhile, in the United Kingdom, proposed plans to unify the tax rates across all online gambling verticals have sparked strong opposition from the horseracing industry. Critics argue that the change could inflict serious damage on the sector.
The unfolding situation in the Netherlands may serve as a cautionary tale for other governments: raising gambling taxes does not always guarantee increased public revenue—especially when higher costs drive players away from the regulated market.
Source: focusgn.com
