Holland Casino, the Dutch land-based gambling monopoly, is grappling with a challenging financial situation as it faces mounting costs and increased tax burdens. The company’s CFO, Ruud Bergervoet, has issued a stark warning about the casino’s “vulnerable” financial position following a tough first half of the year, exacerbated by high inflation and escalating operational expenses.
Tax Hike Threatens Financial Stability
The financial challenges are set to deepen as a proposed tax hike looms. In May, a coalition of four political parties suggested raising the gambling tax rate from 30.5% to 37.8% by 2025. This move could generate an additional €202.0m (£171.5m/$225.0m) in annual tax revenue but would further strain Holland Casino’s already fragile finances. This proposal follows a 1% tax increase for 2024, which the company has already described as having a significant negative impact. The tax hike contributed to a net loss of €3.5m for the first half of 2023.
Petra de Ruiter, Holland Casino’s CEO, expressed deep concern over the potential tax increase. She described the proposed 7.3% rise as “irresponsible,” warning that it could make profitable operations impossible. “Our total tax burden will then be almost 50%,” she stated. “This means black numbers are not possible. We will then make a significant loss. Unlike supermarkets, we cannot properly pass on price increases.”
De Ruiter further warned that if the tax increase is implemented, Holland Casino may have to resort to “undesirable” measures to stay afloat. These could include aggressive customer acquisition strategies, encouraging higher spending among existing customers, or reducing prize payouts—actions she described as “unacceptable for Holland Casino and irresponsible from government policy on gambling.”
Despite some positive performance in retail slots and catering, the company’s overall financial results for the first half of 2023 were disappointing. Revenue for the six months to June 30 was down 2.4% year-on-year to €395.4m, with a 14.7% drop in online turnover. The 1% tax increase alone added €3.7m in extra costs, while personnel expenses rose by 11%. However, operational cost savings of €5.4m provided some relief.
Bergervoet stressed the critical nature of the situation, noting that the company is still repaying debts from the COVID-19 pandemic. He emphasized the importance of avoiding any further cost increases to prevent the company from falling into a “losing situation.”
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