Dutch Gambling Tax Hike Falls Short of Targets

The Netherlands’ recent gambling tax increases have generated significantly less revenue than expected, according to a monitoring report published by the Ministry of Finance and the Kansspelautoriteit (KSA).

The tax rate on gambling was raised in two stages, increasing from 30.5% to 34.2% in January 2025 and then to 37.8% in January 2026. The government anticipated that the higher rates would contribute an additional €108 million in 2025 and €216 million in 2026 to public finances.

However, the latest figures indicate that the outcome has fallen well below those expectations. The report found that tax revenue in 2025 was only €2 million higher than the previous year, while forecasts for 2026 suggest an increase of around €57 million compared with 2024 levels.

Multiple Factors Affected Revenue

Authorities noted that several regulatory changes occurred alongside the tax increases, making it difficult to determine the precise impact of the higher tax rates alone.

New responsible gambling measures introduced at the end of 2024 included monthly deposit limits of €300 for young adults and €700 for older players. These restrictions reduced player spending, which consequently lowered the taxable revenue generated by operators.

Additional measures, including tighter advertising restrictions and the prohibition of gambling sponsorships, also contributed to changes across the market.

According to the report, while the higher tax rate had the potential to increase government income, the decline in gambling activity significantly reduced the expected gains. Estimates suggested the standalone effect of the tax increase could have generated €83 million in 2025 and €138 million in 2026, but actual results remained substantially below those projections.

The report also highlighted decreases in corporate tax revenue, dividends from state-owned gambling companies and contributions to sports and charitable causes.

Effects on the Gambling Industry

The land-based gambling sector experienced a noticeable decline during the period. Casino and slot hall visits fell by 11% between early 2025 and early 2026, while the number of operating venues also decreased.

Several operators, including major casino chains, closed locations and cited rising operational costs and increased taxation among the factors influencing those decisions.

Online gambling performance showed a different trend. After a significant decline following the introduction of player protection measures in late 2024, the market stabilised. Gross gaming revenue from online operators remained relatively steady and recorded a modest increase during the first months of 2026.

While the report did not identify the tax increase as the sole driver of market changes, it concluded that the combination of stricter regulations and higher taxation has created additional pressure on gambling operators across the Dutch market.