Holland Casino in the Netherlands is looking to improve on its abysmal financial position by introducing American-style double zero roulette at its venues. This change will take effect next year across its 14 state-owned locations as the group grapples with financial challenges and rising costs.
The decision comes amidst increasing pressure from declining foot traffic, higher operational expenses, and the lingering effects of the pandemic. Additionally, the government’s decision to implement steep gambling tax hikes has added to the strain, forcing the casino group to rethink its operations.
Tax Increases Push Casinos to Adapt
A new tax structure unveiled by the Dutch government last September has hit Holland Casino hard. Gambling income tax, currently set at 30.5% of gross gaming revenue (GGR), will rise to 34.2% in 2025 and further increase to 37.8% by 2026. The staged tax hike was meant to give businesses time to adjust, but Holland Casino’s CEO, Petra de Ruiter, voiced concerns about its long-term impact.
“The tax hike is irresponsible,” said de Ruiter. “A 37.8% rate increases the operator’s effective tax rate to around 50% of revenue. We will then make a significant loss. Unlike supermarkets, we cannot properly pass on price increases. Only cutting prize money for players, and being more aggressive in customer acquisition, would help balance the books. These measures are unacceptable for Holland Casino and irresponsible with regards to government policy on gambling.”
The increased tax burden means the group must find an additional €100 million to avoid operating at a loss. To address this, Holland Casino has implemented cost-cutting measures, including reducing operating hours, laying off staff, and decreasing the return-to-player (RTP) value for its games.
Zandvoort Casino to Close
One of the most visible outcomes of these cutbacks is the planned closure of Holland Casino Zandvoort in 2025. Opened in 1976, this was the first casino in the group and holds a special place in its history.
While acknowledging the emotional weight of this decision, de Ruiter emphasized the need to focus on the company’s future. “The closure is essential to continue building a sustainable future for the company, in which we can continue to contribute to a safe and responsible gaming climate,” she said. She also noted efforts to relocate most employees to other locations.
Double Zero Roulette as a Revenue Booster
Adding a double zero to the roulette wheel is one of the strategies Holland Casino is using to increase profitability. In traditional single zero roulette, the house edge is 2.7%, meaning the casino earns $2.70 for every $100 wagered. By switching to the American-style version, which features both a single and double zero, the house edge increases to 5.26%. This change gives the casino a better margin, albeit at the expense of players’ chances.
What Lies Ahead for Holland Casino
While the introduction of double zero roulette and other changes might help balance the books, they have raised concerns among players and industry observers. With the increased house edge and reduced RTP across games, some fear that players may seek alternatives in other casinos or online platforms.
For Holland Casino, the path forward will involve balancing profitability with maintaining trust and a responsible gaming environment. Whether these measures will stabilize the group remains to be seen.
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