Dutch Gambling Tax Hike Puts Legal Market Under Pressure

The Dutch Gambling Authority (Kansspelautoriteit, or KSA) is warning that the recent gambling tax increase is backfiring — hurting licensed operators and weakening the regulated market instead of filling government coffers.

Good to Know

• Tax jumped from 30.5% to 34.2% in January 2025.
• Land-based venues fell 9% in the first quarter alone.
• Illegal operators gaining ground, especially online.

Operators Struggling to Stay Profitable

KSA chairman Michel Groothuizen says the higher tax is forcing gambling providers to either raise revenue or cut costs — but legal operators have few options left.

“The increase in the gambling tax means that gambling providers must take measures to maintain their profitability,” Groothuizen said. “In the country-specific part of the market, the possibilities for this are limited.”

Land-based venues are feeling it most. In just the first three months of 2025, their numbers dropped 9% compared to the previous quarter — far steeper than the 6% annual decline seen between 2020 and 2025.

Online Sector Feels the Squeeze Too

While online operators have more flexibility — such as adjusting payout percentages — they’re also under strain. The 2024 Policy Rule on Responsible Gaming introduced tougher affordability checks and stricter spending limits, making it harder for licensed platforms to compete with unregulated ones.

Groothuizen says the KSA warned about these risks long before the tax hike took effect:

“The KSA has already indicated before the introduction of the increase in the gambling tax that this would be the effect.”

Industry Leaders Sound the Alarm

Speaking at an international conference, Netherlands Online Gambling Association (NOGA) founder Peter-Paul de Goeij called the current situation “death by taxes.”

He argued that new deposit limits have pushed players toward offshore sites, noting that only 49% of online gambling revenue now flows through licensed operators.

Pontus Lindwall, CEO of Betsson, echoed the concern:

“Regulation isn’t for the benefit of operators. It’s for protecting consumers, and failing to protect 50% is a failure.”

Another Tax Hike on the Horizon

The KSA says it will continue monitoring both the online and land-based sectors, focusing on whether players stay in the legal market. But there’s fresh anxiety in the industry — the gambling tax is set to climb again to nearly 38% by year’s end, which could accelerate the shift toward unlicensed operators.

FAQ

What is the current gambling tax rate in the Netherlands?

As of January 2025, the rate is 34.2%. It’s set to rise to almost 38% by the end of the year.

Why are land-based venues closing?

Higher taxes and limited ways to cut costs have made many physical gambling venues unprofitable.

What’s happening to online gambling revenue?

Only about half of online gambling revenue now comes from licensed operators, with the rest going to unregulated sites.

Summary

The Dutch gambling tax hike is straining both online and land-based operators, reducing legal market share and potentially undermining consumer protection. With another increase due later this year, pressure on the regulated sector — and the players it’s meant to protect — is likely to intensify.

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