Holland Casino, a prominent land-based gambling operator in the Netherlands, expressed concerns about the increased gambling tax impacting its operations, despite reporting growth in the first half of 2025. The company, represented by CFO Ruud Bergervoet, highlighted the vulnerabilities introduced by the planned tax hikes.
The Dutch gambling tax is scheduled to rise in two phases. The first increase raised the tax from 30.5% to 34.2% of gross gaming revenue (GGR) and went into effect on January 1, 2025. A further hike will bring the tax to 37.8% starting January 1, 2026. Holland Casino has already experienced the initial impact of this tax rise in the first half of 2025, and the company voiced concerns about the upcoming increase.
Bergervoet noted that if the 37.8% tax rate had been in place during the first half of the year, Holland Casino’s profits would have been significantly affected. At the current rate of 34.2%, the company faced an additional €13.5 million in costs during this period. He warned that if the 37.8% rate had been applied, the company would have closed the first half with a minimal profit of €1.1 million, or potentially a loss of €5.5 million if it hadn’t benefited from a one-time revenue boost from property sales.
“The financial pressure remains high, especially considering the planned second increase in gaming tax in 2026,” Bergervoet remarked, underlining the fragility of the company’s position despite efforts to mitigate such impacts.
Holland Casino’s financial results were bolstered by the sale of two properties, which collectively brought in €11.4 million. The sale of a location in Zandvoort generated €8.7 million, while the former Groningen casino contributed €2.7 million. These transactions boosted the operator’s profit by €6.6 million.
Overall, Holland Casino reported a slight decline in year-on-year revenue to €390.9 million for the first half of the year. While in-store revenue saw slight growth, online revenue decreased, primarily due to stricter player protection measures introduced in October 2024. These new measures limited player deposits to €700 per month, with a reduced cap of €300 for players aged 18 to 25.
Despite these challenges, the company managed to reduce its operating expenses by €30.1 million, achieved through targeted cost-saving measures, including a restructuring at its head office. As a result, Holland Casino reported a profit before corporate tax of €14.2 million, a significant improvement from the previous year’s €3.5 million loss.
The initial tax hike, intended to boost government revenue, has not yet met expectations. Dutch publication Financieele Dagblad reported in August that the Licensed Dutch Online Gambling Providers (VNLOK) trade body showed a 25% year-on-year decline in gross gaming revenue for the first half of the year. Consequently, Kansspelautoriteit, the Dutch gaming authority, collected only 83% of the tax revenue compared to the previous year, despite the higher tax rate applied since January.
The Ministry of Finance had anticipated an additional €200 million in annual revenue from 2025 to 2028 when the tax increase was approved. However, these projections have not materialized as expected, raising questions about the effectiveness of the tax strategy.
Industry experts suggest that the tax increase may have unintended consequences, as it could potentially drive players to untaxed or less-regulated markets, reducing the overall revenue generated from licensed operators. The increased financial burden on operators like Holland Casino might inadvertently stifle market growth instead of encouraging it.
On the other hand, some argue that the government’s intent to increase tax revenue from the gambling industry is justified, considering the social responsibilities tied to gambling activities. The funds generated from taxes are often allocated to social initiatives, including gambling addiction prevention and treatment programs. The government may need to strike a balance between taxation and industry sustainability to achieve its objectives.
As Holland Casino navigates the evolving tax landscape, the company is likely to explore additional cost-reduction strategies and potential revenue-generating opportunities to maintain its financial stability. The upcoming year will be crucial in determining the long-term effects of the tax increase on both the company and the broader Dutch gambling industry.
In conclusion, while the Dutch gambling tax increase poses challenges for Holland Casino and the industry as a whole, it underscores the ongoing debate between generating government revenue and ensuring a sustainable gambling market. The next phase of the tax hike will be closely monitored by stakeholders to assess its impact and guide future policy decisions.
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