According to a new joint assessment by the Ministry of Finance and the Netherlands gambling authority, Kansspelautoriteit, the higher gambling tax in the Netherlands has only generated a small fraction of the additional revenues expected by policymakers.
Netherlands’ Higher Gambling Tax Raises Just EUR 2M in 2025
The tax rate was increased to 34.2% from 30.5% at the beginning of 2025, and further to 37.8% on 1 January 2026. The hikes were introduced to bolster public finances. The first move was designed to generate an additional EUR 108 million ($122 million) per year, with the second set to double this to EUR 216 million ($245 million).
Those targets have not been reached. Gambling tax receipts increased by just EUR 2 million ($2.3 million) in 2025 compared to 2024, according to the report. Officials now expect an additional EUR 57 million ($64.6 million) for 2026, well below the original projection. Total gambling tax revenues were some EUR 1,036 billion ($1,174 billion) in 2025, an increase from EUR 1,034 billion ($1,172) in 2024. The 2026 number is projected to be EUR 1.091 billion ($1,237), adjusted for inflation and seasonal changes.
The report cites a declining taxable base as the main reason for the shortfall. Most gambling is taxed on gross gaming revenue, which is the amount of the stakes less the prizes paid out. That base has been squeezed by a range of developments going on at about the same time as the tax changes.
New Rules and Tax Hike Squeeze Dutch Gambling Market
New rules to protect players introduced in late 2024 capped the amount customers could deposit unless they could prove they could afford to lose more. The measures set monthly net deposit limits of EUR 300 ($340) for young adults and EUR 700 ($793) for players aged 24 and over. The market has also been changed by restrictions on advertising and sponsorship, and it is difficult for authorities to disentangle the impact of taxation from other regulatory changes.
The higher levy could also lower other sources of income for the state. Less is expected to be paid in profits, corporation tax, dividends, and other related payments from Holland Casino and the Dutch Lottery, both of which have links to public finances. The report estimated the tax increase would cost Holland Casino EUR 27 million ($30.6 million) in pre-tax profit in 2025, with a bigger impact expected in 2026. The Dutch Lottery was also less generous, with the effect on flows of funding to sport and good causes.
Land-based gambling has taken a particularly hard hit. Visits to arcades and Holland Casino locations fell from 4.6 million in the first quarter of 2025 to 4.1 million a year later, an 11% drop. The report said the sector was already battling rising costs, post-pandemic pressures, and competition from online gambling, and several arcade operators have closed venues.
The industry has warned of illegal gambling, but authorities say it is difficult to draw firm conclusions because too many changes in the market overlapped. However, the findings suggest the tax increase has generated far less for the treasury than intended.