Dutch Gambling Tax Hike Linked to Lower-Than-Expected Revenue

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According to a new report, the Netherlands' increase in gambling taxes has prompted a new debate over the impact of higher tax rates on the regulated gambling market, as it has generated less revenue than expected.

Sources state that the country's gambling tax first rose from 30.5% to 34.2% of gross gaming revenue in January 2025. At the beginning of 2026, this number increased to 37.8%. The measure was introduced to boost government tax receipts.

However, figures mentioned by the Dutch gambling regulator, Kansspelautoriteit (KSA), show that tax revenue has fallen short of expectations. Industry groups estimate the shortfall could reach approximately €200 million compared with original government projections.

According to the KSA, the higher tax burden has coincided with a decline in the channelization rate, which measures the share of gambling activity conducted through licensed operators. The tax burden has reportedly led some players to switch to unlicensed platforms that are not subject to Dutch taxes or regulatory requirements.

The issue has also affected licensed operators and several companies, such as the state-owned casino operator Holland Casino, which have since warned that rising taxes and compliance costs are putting additional pressure on the profitability of these firms. Executives also argue that further tax increases could reduce investment and make it harder to compete with unregulated providers.

For regulators, the challenge remains the same: increasing oversight and public revenue without driving players toward operators that sit outside the regulatory perimeter.