Dutch Gambling Regulator says increased tax rates haven’t worked with lower tax collections
The Dutch Gaming Authority KSA (Kansspelautoriteit) has carried out an effect measurement into the consequences of the increase in the gambling tax.
As of January 1, 2025, the gambling tax has been increased from 30.5 per cent to 34.2 per cent. The purpose of this increase was to increase government revenues. The Ksa’s effect measurement shows that this goal is not being achieved. Due to various developments, the gross gaming result (BSR) has decreased in both the online and the land-based market. As a result, despite the increase in the gambling tax, tax revenues have decreased.
The increase in the gambling tax means that gambling providers must take measures to maintain their profitability. This can be done in various ways, for example by reducing costs or increasing income. In the country-specific part of the market, the possibilities for this are limited. As a result, the tax increase will cause further problems for this part of the market in particular. The Ksa is currently seeing a faster decrease in the number of playing locations. For example, the number of playing locations in the first quarter of 2025 decreased by nine per cent compared to the last quarter of 2024. By comparison, between 2020 and 2025, the number of gaming venues decreased by an average of six per cent per year.
The BSR has also decreased in the online market, partly due to the introduction of various measures such as the Policy Rule on Responsible Gaming 2024 and the Regulation on Playing Limits and More Conscious Gaming Behaviour. Nevertheless, the online market seems to have slightly more room to absorb the decline in the BSR than country-specific providers. This is because they have more opportunities to adjust payout percentages and reduce other costs.
Michel Groothuizen, chairman of Ksa, said: “The measures we have taken to offer players more protection have made it more difficult for providers financially. This has led to a decrease in the BSR for the entire market. As a result, the revenue from gambling tax has also decreased. The Ksa has already indicated before the introduction of the increase in the gambling tax that this would be the effect. A financially driven measure such as gambling tax is at odds with the policy objective of offering players more protection. If we want to be able to offer players a protected gaming environment in the future, this presupposes serious responsible providers. A financially healthy legal market is essential for this.”
The Ksa keeps a close eye on developments in the field of channelling online supply and the decline in the number of branches of the land-based supply.
