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KSA admits gambling tax hike failure to raise extra revenue
On August 5, the Netherlands Gambling Authority (KSA) revealed that the Dutch gambling tax hike to 34.2% failed to raise extra revenue.
The tax hike, which has been in effect since January 1, 2025, has failed to raise revenue, with GGR declining both in the online and offline markets. The said tax revenue for 2025 so far stands at just 83% of the same period in 2024.
This is the result of customers increasingly turning towards the black market, as new responsible gambling restrictions and increased taxes made legal offerings less attractive to customers.
Michel Groothuizen, Chair of KSA, said in a statement:
“The measures we have taken to offer players more protection have made it financially more difficult for providers. This has led to a decrease in GGR for the entire market.
Consequently, gambling tax revenues have also decreased. The KSA had already indicated this would be the effect before the increase in the gambling tax was implemented.
A financially driven measure like a gambling tax is at odds with the policy objective of offering players more protection. If we want to offer players a protected gaming environment in the future, this requires serious, responsible providers. A financially sound, legal market is essential for this.”
The regulator also highlighted that the land-based market has been affected more by the tax changes because of bigger limits to offset the profitability hits. As such, the number of retail gaming outlets has declined 9% in Q1 2025 compared to the 6% average decline between 2020 and 2025.
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