The Dutch gambling regulator, Kansspelautoriteit (KSA), has disclosed that contrary to expectations, a recent tax increase has negatively impacted gambling tax revenue, raised from 30.5% to 34.2% on based market earnings.
The tax hike aimed to increase state revenue by €202m by 2028. However, the measure has curtailed GGR, with the legal market experiencing a 25% drop in the first half of 2025 compared to the same period in 2024, according to figures from VNLOK. Consequently, the KSA anticipates reporting that gambling tax revenue for 2025 will reach only 83% of the previous year’s level, resulting in a shortfall exceeding €200m.
Increased taxes have forced providers to adopt strategies to maintain profitability, particularly affecting land-based operations where such measures are limited. The number of physical gaming venues declined by 9% year-on-year in Q1 2025, a sharper drop than the average 6% annual decrease observed from 2020 to 2025.
The online sector also experienced reduced GGR, partly due to stricter deposit limits and enhanced player protection rules implemented in late 2024. Despite these challenges, online operators have more flexibility to mitigate the financial decline by adjusting payout rates and cutting operational costs.
Michel Groothuizen, KSA’s Chairman, expressed concerns over the unintended economic impact of the tax increase, suggesting it might hinder responsible gambling efforts.
“The measures we have taken to offer players more protection have made it more difficult for providers financially,” he says.
“This has led to a decrease in GGR for the entire market and, as a result, the revenue from gambling tax has also decreased.”
Groothuizen also emphasized the importance of a financially robust legal market in order to maintain a protected gaming environment, adding: “If we want to offer players a protected gaming environment in the future, this presupposes serious responsible providers. A financially healthy legal market is essential for this.”
