Dutch Lottery Warns Against Further Tax Increases

The Dutch Lottery has stated that the Netherlands’ increased gambling taxes have crippled the sector, diminishing the money the lottery raises for good causes. The lottery’s chief executive officer, Arjan Blok, warned that this has made the legal industry less competitive and, by extension, has also made the black market more dangerous.

The Lottery’s 2025 Results Took a Blow

In a foreword preceding the Dutch Lottery’s (Nederlandse Loterij) report for 2025, Blok weighed in on the lottery’s performance in 2025. He stated that the year cemented the Dutch Lottery as a business at the intersection of fun, responsibility, and public value. According to him, millions of Dutch players continued to enjoy the lottery’s products, despite the setbacks faced by the industry.

Speaking of said setbacks, Blok noted that the increase in public attention to the gambling sector led to tighter regulations, and, by extension, reduced the lottery’s earning capacity. For context, the Netherlands raised its gambling tax from 30.5% to 34.2% a year ago and followed that up with another raise earlier this year, settling on a 37.8% tax rate.

As a result, in 2025, the Dutch Lottery earned EUR 688.9 million ($798.7 million), which marked a 5% decrease year-on-year. The company’s net loss, on the other hand, reached EUR 7.7 million ($8.93 million), versus a EUR 30.9 million ($35.8 million) net profit in 2024.

Lawmakers Should Reject Further Tax Hikes

Blok explained that the higher taxes made legal gaming less competitive since it can no longer offer attractive prizes and gaming options. This has ended up empowering the black market and risking more people drifting to it. This, in turn, also reduced the funding that legal gaming can raise for good causes.

In his statement, Blok claimed that the Netherlands’ channelization rate is now below 50% in terms of gross gaming revenue, citing recent Kansspelautoriteit (KSA) data. Because of that, Blok argued that the focus of regulation should be on disrupting illegal operators rather than over-regulating their legal counterparts.

He encouraged a measured approach to gambling tax, and asked lawmakers, at the very least, not to raise the tax further. He emphasized that hypothetical increases would further endanger the balance between responsible regulated gaming and funding for good causes.

Blok emphasized that the people who tend to turn to the black market are usually the ones who need protection the most.

In the meantime, the Netherlands is considering further ad restrictions, including a controversial ban on all ads.