Amsterdam, August 2025 – The Netherlands Gambling Authority (KSA) has conceded that the January 2025 increase in the gambling tax rate to 34.2% has failed to deliver the expected revenue boost and is instead undermining the regulated market.
According to KSA’s review, gross gaming revenue (GGR) has dropped across both the online and land-based sectors, with trade body VNLOK reporting that tax receipts now stand at just 83% of the levels collected in the same period of 2024. This shortfall is hitting public finances while placing additional strain on licensed operators.
KSA Chair Michel Groothuizen said the outcome was predictable: “Measures meant to protect players have strained operators financially… resulting in reduced GGR and lower gaming tax income.” He warned that weakening the financial stability of the regulated sector works against the goal of player protection and risks eroding the market to the benefit of unlicensed competitors.
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The impact is most visible in the land-based segment, which saw a 9% drop in venues in Q1 2025, accelerating the average annual decline of around 6% recorded since 2020. Online operators, while better able to adjust payout ratios and control costs, have also been hit by the tax hike and simultaneous tightening of responsible gambling measures.
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Industry stakeholders note that more players are turning to unregulated offshore platforms, where such tax and compliance pressures do not apply, further draining activity from the legal market. Despite these warnings, the government still plans to raise the gambling tax to 37.8% in 2026, raising fresh concerns over long-term revenue stability and channelization rates.
