Dutch Lottery warns that increasing tax could drive players to the black market
The argument has been made by several operators and regulators around the world in recent months.
Key points:
– The Nederlandse Loterij CEO has issued a statement on the proposed tax hikes
– He warns that higher taxes could hurt channelisation efforts
– He also explained how it could result in lower contributions to Dutch sports and charities
Arjan Blok, Nederlandse Loterij CEO, has publicly spoken out about the potential consequences of increasing the gambling tax to 37.8% in the Netherlands.
The tax rate was initially 30.5% of gross gaming revenue (GGR), but this was raised to 34.2% on 1 January 2025.
The second rise to 37.8% is due to be introduced in January 2026, but those in the industry claim this is too high.
By comparison, many in the UK are demanding action and striking over the gambling tax being raised from 15% to 25% on gross profits.
Blok explained: “The umpteenth increase in the gambling tax drives players to the illegal market. Due to the high gambling tax in the Netherlands, our responsible offer is becoming less attractive.
“Players look for a more financially interesting, illegal alternative, where they play without any protection.”
When operators are hit with increased tax, they will have to find ways to pass that on to the customer, whether that’s through less promotions, minimum wager limits or surcharges, such as those introduced by FanDuel in Illinois.
Blok continued: “Almost half of the market is now illegal. We offer games of chance, which means we have the task of protecting players. Moreover, more tax means less structural financial support for Dutch sports and charities, to which the proceeds of the Dutch Lottery go.”
Good to know: In 2024, Nederlandse Loterij donated €203.6m ($241m) to 18 charities involved in sports, health and well-being
He concluded: “Now that the Budget Memorandum also shows that the revenue from the gambling tax – despite increases – will decrease by no less than €263m, there is only one sensible choice: freeze the gambling tax and protect players against illegal offers.”
Finally, the Netherlands Gambling Authority (KSA) recently published studies on how raising the tax to 34.2% has already led to lower revenue and channelisation rates.
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