JVH Gaming, known for operating Jack’s Casino and various fruit machine arcades, has unveiled plans to close 25 locations. The decision includes discontinuing the Flamingo Casino brand entirely while also reducing staff at its headquarters.
Rising Costs and Tax Burden Drive Decision
The closures, which will mainly impact Flash Casino-branded arcades, come as the company grapples with increasing operational costs and a steep rise in gambling taxes. The Dutch government raised the gambling tax rate by one percentage point this year, with further hikes set to follow. By 2025, the rate will increase from 30.5% to 34.2%, eventually reaching 37.8% in 2026. These changes aim to bring an additional €200 million annually to the treasury.
Erik Olders, CEO of JVH Gaming, expressed his concerns about the tax increases. He described them as a “bitter pill” that forced the company to make difficult adjustments. “This move was necessary to ‘deal with the pain,’” Olders stated. He also highlighted rising expenses related to wages, rent, and energy, as well as the lingering impact of the COVID-19 pandemic.
JVH Gaming currently operates 87 arcades across the Netherlands under brands like Jack’s Casino, Flash Casino, and Flamingo Casino. Despite recording €184 million ($193.68 million) in sales last year after taxes, the company is feeling the financial strain.
This decision reflects broader challenges in the Dutch gambling industry. Earlier this year, the Janshen-Hahnraths Group, which operates Fair Play Casino, announced plans to cut 100 jobs after consecutive years of losses. Similarly, Holland Casino Group, the state-owned operator, disclosed in October that it would close its Zandvoort branch—the oldest casino in the Netherlands—by next year.
The Dutch gambling sector faces mounting financial pressure, driven by escalating taxes and operational costs. JVH Gaming’s strategic response, though difficult, underscores the challenges many operators must confront in this evolving landscape.
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