The Hague – The Dutch Gaming Authority (Ksa) has released its impact assessment following the gambling tax increase implemented on 1 January 2025, which raised the rate from 30.5% to 34.2%. Intended to generate higher government revenue, the measure has instead led to a decline in overall tax receipts.
Key Findings from the Ksa Impact Measurement
- Gross Gaming Revenue (BSR) Decline
Both the online and land-based gambling sectors have experienced a drop in gross gaming results. Despite the higher tax rate, the reduced BSR has led to lower overall tax revenue. - Land-Based Sector Under Pressure
Operators in the physical market face limited options to offset the tax burden. Cost-cutting and revenue-boosting strategies are constrained, leading to a faster contraction of venues:- In Q1 2025, the number of venues fell by 9% compared to Q4 2024.
- By contrast, the average annual decline from 2020 to 2025 was 6%.
- Online Market More Resilient
The online sector has also seen a BSR decline, influenced by new regulatory measures such as the Responsible Operation Policy Rule 2024 and Rules of Play Limits, which promote more conscious gambling behavior. However, online operators have greater flexibility to adjust pricing and manage costs, allowing them to better absorb the impact.
Ksa Chairman Michel Groothuizen Comments
“The measures we’ve taken to protect players have made operations more challenging for providers. This has led to a decline in BSR and, consequently, reduced gambling tax income. We had anticipated this outcome. Financially driven tax policy conflicts with the goal of player protection. A sustainable, responsible gambling environment requires financially viable legal operators.”
Ongoing Monitoring
The Ksa continues to closely monitor:
- Channeling trends in the online gambling supply
- Venue attrition in the land-based sector
These developments underscore the tension between fiscal policy and regulatory goals, highlighting the need for a balanced approach to taxation and consumer protection in the Dutch gambling market.
