The Netherlands Tax Hike Leads to Reduced Revenues and Increased Illegal Gambling

In January 2025, the Netherlands rose their gambling tax from 30.5% to 34.2% with the aim to increase government revenue. However, the updated regime resulted in a shortfall of €30m in taxes, in both online casino and land-based activities, compared to the same period in 2024.

The Netherlands Gaming Authority (KSA) has also intended for the update to increase player protection, reinforcing that a sustainable legal market with responsible and financially sound operators is essential to protect players. Yet the increased tax and regulatory burdens has made it harder for operators to compete and approximately half of online gambling money is now flowing through unlicensed operators.

Licensed Dutch Online Gambling Providers (VNLOK) has proposed they need to assess the current illegal gambling market and freeze the tax rate at 34.2% whilst they decide on what steps to take next. They have also suggested to focus policies around keeping players from unlicenced operations.

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