The Netherlands’ efforts to increase public income through higher gambling taxes have produced results well below official expectations, according to a joint review by the Ministry of Finance and the Kansspelautoriteit (KSA).
The assessment found that the government’s strategy of raising gambling duties in stages failed to deliver the projected increase in revenue. While tax rates climbed substantially over two years, actual gains remained modest as gambling activity subject to taxation declined.
Revenue Growth Falls Short of Expectations
Dutch authorities increased the gambling tax rate from 30.5% to 34.2% at the beginning of 2025. A second increase followed in January 2026, lifting the rate to 37.8%.
Officials originally estimated that the higher rates would generate an additional €108 million during 2025 and a further €216 million in 2026. The actual outcome proved considerably lower. Additional revenue in 2025 reached only about €2 million, while the projected gain for 2026 has been revised to approximately €57 million compared with 2024 levels.
Overall gambling tax receipts reached €1.036 billion in 2025, compared with €1.034 billion in the previous year. Despite the higher tax burden, total collections showed only a marginal increase.
According to the report, a shrinking taxable base played a central role in limiting revenue growth. Reduced gambling activity offset much of the expected benefit from the higher rates, although the review acknowledged that isolating the exact impact of taxation from other market developments remains difficult.
Regulatory Changes Affect Market Activity
The analysis identified several factors that coincided with the weaker-than-anticipated results. Regulatory reforms aimed at strengthening consumer protection formed a significant part of the changing landscape.
Measures introduced in late 2024 included monthly net deposit limits of €300 for younger adults and €700 for older players. Authorities also implemented additional restrictions on gambling advertising, including limits affecting television promotion and sports sponsorship agreements.
The report noted that increased regulatory oversight, changing market conditions and reduced activity linked to major sporting events also contributed to lower gambling turnover.
These developments collectively reduced the volume of taxable gambling activity, limiting the financial impact of the tax increases.
Land-Based Sector Under Pressure
The land-based segment faced additional challenges. KSA data showed visits to gaming halls and Holland Casino venues declined by around 11% year-on-year between early 2025 and early 2026.
Several operators closed venues or reduced their retail presence. The report noted that higher taxes formed only part of the pressure facing the sector, alongside post-pandemic recovery issues, competition from online gambling, self-exclusion measures and rising operating costs.
Higher taxes also affected profitability at Holland Casino and Nederlandse Loterij, reducing broader financial contributions to the state and limiting the overall fiscal benefit of the policy.
Meanwhile, the regulated online gambling market remained relatively stable, with gross gaming revenue showing limited change and the number of licensed operators continuing to grow.
The findings are expected to intensify debate over whether higher gambling taxes can increase government revenue without reducing activity in regulated markets.
Source:
“Netherlands Gambling Tax Rises Fail to Meet Revenue Targets”, news.worldcasinodirectory.com, Jun 24, 2026
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