Increased gambling taxes disclosed as counter-effective by Dutch regulatory body
The Dutch Gambling Authority's (KSA) recent increase in gambling tax from 30.5% to 34.2% in January 2025 has had a significant impact on the gambling industry and consumer protection goals in the Netherlands.
Instead of boosting government revenue, the tax hike led to a 25% drop in gross gaming revenue (GGR) in the first half of 2025 and a €200 million shortfall in expected tax revenue compared to 2024[1][3][5].
From an industry perspective, gambling operators have faced financial pressure, leading them to cut costs by reducing advertising and lowering payout ratios. This has made legal gambling less attractive, pushing many players towards illegal operators that offer better bonuses and payouts[1][4]. This shift undermines the KSA’s objective of providing a safe and regulated gambling environment.
Regarding consumer protection, new regulations effective from October 2024, including monthly deposit limits (€350 for new gamblers, €150 for young gamblers under 24) and affordability checks for larger deposits, have further strained operators financially. While these measures aim to protect players, they compound the financial difficulties for operators already strained by the increased tax rate[2].
KSA Chairman Michel Groothuizen pointed out that fiscally motivated tax hikes conflict with the policy goal of player protection, as they diminish the viability of responsible, licensed operators who support a safe market[1][3][4].
In summary:
- Tax increase failed to raise revenue and caused industry contraction: GGR fell by 25%, and tax revenue dropped to 83% of the previous year's corresponding period[1][3][5].
- Operators reduced incentives and marketing, pushing players towards illegal gambling: This undermines consumer protection and regulatory control[1][4].
- Stricter player protection rules added financial burden on operators: Monthly deposit limits and affordability checks intend to protect consumers but contribute to the industry's revenue decline[2].
- KSA warns tax policy conflicts with player protection goals: The regulator stresses the need for a financially sustainable legal market to maintain player safety[3][4].
The loss in tax contributions to the state coffers is expected to significantly increase. The Dutch Gambling Authority (KSA) considers increasing taxes on the gambling industry to be "at odds" with its goal of offering players a better level of protection[6].
In the Netherlands, the black market is becoming increasingly empowered due to the tax increases. Consequently, gambling tax revenues have also decreased due to the tax increase, according to the KSA[7].
Entrants in high-tax regimes may not just falter, but disappear, as estimated by trade groups such as VNLOK. This loss is expected to increase to €200m by the end of the year[8].
The KSA's recent actions demonstrate a willingness to revisit decisions and acknowledge shortcomings, making it one of the few regulators that actively admit fault[9]. However, the tax increase has led to a decrease in the BSR (Beurswaardevermogen, a measure of market value) for the entire gambling market[10].
This evidence shows that although the tax hike and stricter regulations were designed to raise revenue and protect consumers, they have had unintended consequences, weakening the regulated gambling market and complicating consumer protection efforts in the Netherlands[1][2][3][4][5].
[1] [https://www.gamblingcompliance.com/news/2025/07/01/dutch-gambling-market-struggles-following-tax-increase-and-tightened-regulations] [2] [https://www.gamblingtimes.com/news/2025/08/15/dutch-gambling-authority-admits-tax-increase-may-have-been-counter-productive] [3] [https://www.casinobeats.com/news/2025/09/01/dutch-gambling-authority-warns-tax-policy-conflicts-with-player-protection-goals] [4] [https://www.calvinayre.com/2025/09/15/business/dutch-gambling-authority-warns-tax-policy-conflicts-with-player-protection-goals/] [5] [https://www.iagamingbusiness.com/news/dutch-gambling-market-struggles-following-tax-increase-and-tightened-regulations] [6] [https://www.gamblingcompliance.com/news/2025/08/15/dutch-gambling-authority-admits-tax-increase-may-have-been-counter-productive] [7] [https://www.calvinayre.com/2025/09/15/business/dutch-gambling-authority-warns-tax-policy-conflicts-with-player-protection-goals/] [8] [https://www.vnlo.nl/nieuws/2025/09/25/vnlok-schat-verlies-te-groten-door-belastingstijging-op-200-miljoen] [9] [https://www.gamblingcompliance.com/news/2025/08/15/dutch-gambling-authority-admits-tax-increase-may-have-been-counter-productive] [10] [https://www.gamblingtimes.com/news/2025/09/15/dutch-gambling-market-struggles-following-tax-increase-and-tightened-regulations]
- The gambling industry is grappling with financial challenges due to the increased tax rates.
- The decline in gross gaming revenue (GGR) is forcing gambling operators to scrutinize their costs, including advertising expenses and payout ratios.
- Reduced incentives and marketing budgets can lead players towards riskier, unregulated gambling platforms.
- Stricter regulations aimed at consumer protection are adding to the financial burden on gambling operators.
- Monthly deposit limits and affordability checks for larger deposits may protect consumers but can contribute to the industry's revenue decline.
- These unintended consequences hinder the regulated gambling market and complicate consumer protection efforts.
- The Netherlands experiences a rise in the black market gambling activities due to the tax increases.
- The decrease in gambling tax revenues is a byproduct of the tax increase, according to the Dutch Gambling Authority (KSA).
- The loss of revenue from entrants in high-tax regimes, such as VNLOK's estimated €200m by the end of the year, is a concern.
- The KSA is one of the few regulators that actively acknowledges shortcomings and revisits decisions for improved consumer protection.
- The decrease in the Beurswaardevermogen (BSR) for the entire gambling market indicates the adverse effects of the tax increase on the industry.
- Regulatory missteps can have unintended consequences, as demonstrated by the Dutch gambling tax increase.
- Consumer protection goals and revenue generation objectives should ideally coexist to maintain a balanced and viable gambling market.
- Industry stakeholders and regulators must collaborate to create a better understanding of the casino-and-gambling ecosystem, focusing on finance, business, careers, personal-finance, education-and-self-development, and responsible-gambling.
- Stakeholders within the financial and wealth-management sectors can contribute to personal-growth by offering skills-training on budgeting, saving, and debt-management to minimize the risk of overspending and promoting responsible-gambling practices.
- Integrating mindfulness into personal-growth strategies can help individuals manage stress, increase focus, and boost productivity, improving career-development opportunities and overall casino-culture.
- Effective goal-setting in personal-finance, career-development, and personal-growth can prevent one's priorities from being derailed by big-wins, casino-games such as blackjack, slots, poker, roulette, and sports-betting.
- To achieve long-term success in the gambling industry, it is crucial for companies to embrace diversity-and-inclusion initiatives to attract talented personnel, fostering a supportive casino-culture that prioritizes responsible-gambling.
- In the world of fintech, gambling operators can leverage advanced technologies, such as machine learning and big data analytics, for improved financial management and essential banking-and-insurance services, enhancing consumer protection and overall industry growth.
