According to data published by the Dutch Gaming Authority (Ksa), the gambling tax increase that went into effect on January 1st, 2025, has not produced the desired increase in government tax revenue.
In an attempt to increase state revenue, the tax rate was raised from 30.5% to 34.2%; however, the gross gaming revenue (BSR) has decreased in both online and land-based markets. Overall tax collections have dropped as a result of declining gambling activity and market contractions, even with the higher tax rate.
In order to remain profitable, gambling operators were compelled by this tax increase to either reduce expenses or look for new sources of income.
However, because there are fewer options for physical venues, numbers are declining more quickly. From an average 6% annual decline since 2020, the number of physical gambling venues fell by 9% in the first quarter of 2025 alone when compared to the last quarter of 2024.
Due in part to responsible gambling regulations that have promoted more conscientious gaming behavior, such as tighter play limits and improved player protections, the online gaming industry has also witnessed a decline in gross gaming revenue.
Regulatory Concerns Highlight Market Challenges Amid Tax Hike
Michel Groothuizen, chairman of the Ksa, voiced concern about the impact of protective measures combined with the tax increase.
He stated: “The measures we have taken to offer players more protection have made it more difficult for providers. This has led to a decline in the BSR for the entire market. This also reduced the income from gambling tax. The Ksa has already indicated that this would be the effect.”
He underlined that keeping a financially viable legal gambling industry is crucial to preserving a responsible and safe environment for players, and that a tax-focused approach runs counter to the goal of protecting players.
The KSA is still keeping an eye on the continued decline in land-based gambling establishments and the shift in player behaviour toward authorised online alternatives.
With looming concerns about market sustainability and the potential growth of unregulated, riskier gambling alternatives, the Dutch gambling industry is under strain from both increased taxes and stricter regulations.
The difficulty regulators face in balancing market health, consumer protection, and revenue targets is highlighted by this shifting environment.
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