Gambling tax regulations vary vastly from country to country. In some countries, casinos, racing, and betting establishments are legally obliged to pay tax on their profits, while in others, individuals must also pay tax on their winnings.

Gambling has traditionally been taxed at rates above those of other sectors, especially in Europe. Germany has the highest gambling tax rate in the world, with casinos taxed at 90% of their gross gaming revenue. Taxation is expected to direct consumption and, most importantly, produce revenue for governments.

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 Holland's Gambling Tax Hike Implemented in Two Phases

On September 17th, 2024, Prinsjesdag, or Budget Day in the Netherlands, the Dutch Ministry of Finance presented its State budget for 2025 to Parliament, including legislative proposals for the Tax Plan 2025.

One of the proposals was to gradually increase the Dutch Betting and Gaming Tax (BGT) from the then 30.5% to 34.2%, effective January 1st, 2025 and to 37.8% commencing in January 2026.

The BGT will be increased for budgetary purposes, with forecasts included in the budgetary annexe indicating an expected “structural increase” of government revenues of €202 million per year.

This two-step approach is intended to enable the Dutch betting and gaming industry to better prepare for the overall 7.3% increase in the BGT rate. The Tax Plan 2025 projects that in this year, the dual-phase implementation could result in a one-off reduction of government revenues by €100 million compared to the forecast in the budgetary annexe.

 Concern Over the Impact of the BGT Increase

Several organisations have expressed concern about the BGT increase. The regulated gambling industry, represented by the Dutch gambling industry associations NOGA, VAN Kansspelen, and VNLOK, considers the increase an “irresponsible gamble " and warns of adverse effects on the regulated gambling sector.

The industry associations foresee a further reduction of regulated gambling services offered in the country because legal online casinos would decide to leave the Netherlands, potentially impacting the forecasted structural increase in government revenues.

They also expect illegal gambling to flourish as a result, including an increased risk of money laundering activities and encourage engagement with industry stakeholders to devise a solution in the best interest of the government, industry and citizens.

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 Holland Casino Opposes Increasing the Gambling Tax  

With even higher taxes looming, Holland Casino, the Netherlands’ state-owned casino operator, plans to introduce crucial changes in the way it conducts business to remain operational.

Holland Casino’s latest report casts doubt on its continued ability to operate sustainably, which is further exacerbated by the proposed tax hike, necessitating significant changes for the company to continue operating into 2027.

The state-owned enterprise reported €10.4 million in losses for 2024, due to a decline in the average spend of its customers and the casino’s online branch drop-off amid strong competition from the regulated Dutch iGaming market, highlighting its precarious position.

The company plans an overall workforce reorganisation, which has already seen a layoff of hundreds of employees at its HQ and the potential closure of its less profitable locations in a bid to stem the tide.