Dutch Gambling Sector Urges Tax Review After Revenue Drop

Key stakeholders in the Netherlands’ gambling industry are urging the government to reassess its current tax policy after projections showed a significant decline in tax income from the sector during 2025.

Dutch Industry Warns Gambling Tax Hikes Cut State Revenue

Industry representatives, including the Netherlands Online Gambling Association (VNLOK) and the state-backed Nederlandse Loterij, have sent a joint letter to members of the parliamentary finance committee. In the message, the organizations warned that higher gambling taxes introduced in recent years appear to produce the opposite effect of what policymakers intended.

Based on data gathered by VNLOK, tax contributions from the gambling sector dropped by EUR 43.5 million ($50.4 million) in 2025 when measured against the previous year. The association calculates that total revenue declined from around EUR 322 million ($373.4 million) in 2024 to approximately EUR 288 million ($334 million) in 2025. The findings were based on monitoring carried out among VNLOK members, which together represent the majority of the country’s regulated online gambling market.

The decline comes after a series of tax increases approved under the Dutch government’s fiscal plan. The levy on gross gambling revenue rose from 30.5% to 34.2% at the start of 2025 and climbed again to 37.8% in January 2026. The government designed the measures to boost public income from licensed operators. However, industry groups say the policy has instead weakened the regulated market.

Dutch Gambling Tax Pressure Raises Black Market Concerns

Sector representatives indicated that the higher tax burden has pushed players to move toward unlicensed gambling platforms. Data referenced in the letter suggests that during the first half of 2025, spending on illegal online gambling reached EUR 617 million ($715.6 million), exceeding the EUR 600 million ($695.6 million) generated by licensed operators. Because unregulated sites operate outside Dutch rules and taxation, this shift has reduced government revenue while also limiting consumer protections.

The Dutch gambling regulator Kansspelautoriteit, has also reported that the tax increase failed to deliver the expected financial results. Its monitoring suggested a noticeable drop in sector revenues after operators introduced countermeasures to offset the heavier tax load.

Industry groups further warned that the consequences extend beyond tax receipts. Funding for sports and charitable causes, supported by gambling revenues, has also been affected. Estimates suggest that each percentage point increase in the gambling tax could reduce contributions to sports organizations by about EUR 2.5 million ($2.9 million), with the total impact already expected to reach between EUR 12.5 million ($14.5 million) and EUR 15 million ($17.4 million).

In their letter, the stakeholders called on the government to conduct a formal evaluation of the tax changes and present the findings to parliament by the second quarter of 2026. They also argued that future policy decisions should consider how tax levels have an influence on illegal gambling, consumer protection, and public funding streams.

The request comes ahead of a parliamentary discussion on gambling taxation scheduled for mid-March, where lawmakers have plans to examine the effects of the current regulatory framework.