Dutch Regulator Warns Tax Hike is Harming Legal Gambling Market

The Dutch gambling authority says the recent January tax rise has reduced revenue, weakened legal operators, and pushed players toward unlicensed sites.

The Netherlands raised its gambling tax from 30.5% to 34.2% at the beginning of 2025. Now, the Dutch gambling authority warns that this hasn't had the effect they had in mind.

Instead of helping revenue, it's actually led to lower tax income and put more pressure on legal Dutch casinos. In turn, this could be opening the door for more illegal gambling.

Michael Groothuizen, who heads the Kansspelautoriteit (KSA), explained that with higher taxes, operators are trying to protect their profits by either cutting costs or making more money.

Reported data revealed that there was a €40 million drop, a 5% decline in projected tax revenue for 2025 when compared to 2024. Online operators now retain 12% less of their gross gaming revenue (GGR) after tax, while land-based casinos keep 10% less.

Rising taxes, falling protection

The regulator highlighted that while both online and offline sectors suffer, online operators can adjust more easily by manipulating payout rates or trimming down costs. The reality is that even they face pressure from enhanced rules about playing responsibly, such as deposit caps and affordability checks.

Industry experts voiced their concerns. The Netherlands Online Gambling Association (NOGA) founder compared the tax burden to “death by taxes”, warning of an ongoing migration toward offshore, unlicensed platforms. At present, only 49% of online gambling revenue flows through licensed operators.

Licensed Dutch Online Gambling Providers (VNLOK) chairman Björn Fuchs highlighted the policy’s counterproductive effects, saying that the tax and regulation combination makes legal gambling unpopular.

Meanwhile, Betsson CEO Pontus Lindwall stressed that weakening the legal market jeopardises consumer protection. If half of gambling shifts to unregulated sites, player safety suffers.

Lindwall said: "Regulation isn't for the benefit of operators. It's for protecting consumers, and failing to protect 50% is a failure." He also called for greater collaboration between regulators and stakeholders. In a previous interview, he said, "Regulators sometimes misunderstand their role and may regulate away the very market they aim to protect."

From safety to shortfall

Additional figures also speak of the warning, as the regulator admits that revenues have dropped to just 83% of levels seen in the first half of 2024. In turn, this is completely different from the expected.

Tighter rules about responsible gambling and advertising bans have pushed players toward illegal casinos. Those also offer higher bonuses and fewer restrictions. This shift undermines both regulation and the objective of safe gambling.

The KSA had issued previous warnings before the tax came into effect, stating that financially driven policies conflict with protecting players. As Groothuizen said, "A financially driven measure, such as a gambling tax, is at odds with the policy objective of offering players more protection."

How other European operators handled the taxes

Sweden lifted their gambling tax from 18% to 22% on 1 July 2024, and lawmakers opened the door to lowering it again within months after channelisation concerns.

The UK shows us an alternative path. They focus on RG levers (stake limits) without a huge tax increase to keep the licensed operators competitive, while raising protections.

Denmark is the example that policies determine outcomes, as they focus on a balanced model consisting of strong enforcement, workable tax, attractive legal product and high channelisation.

Protecting players or pushing them away?

The KSA’s blunt warnings illustrate a growing tension. Policies intended to protect players via higher taxes and stricter rules may instead erode legal gambling’s value and fuel illegal alternatives.

For truly safe and regulated gambling, we need a more balanced approach to the Dutch gambling regulations and framework. Perhaps one that sustains operator health, while also safeguarding players.

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By Deni

Verified Casino Expert

Expertise: Casino Content Writing, Journalism & (PR), Gambling Regulations, Dutch & German Gambling Markets

Hi, I'm Deni! I'm a research obsessive with a passion for gambling regulations, market trends, and casino news. I dig deep into every topic I cover - so every article, review, or guide I write is built on solid research and real detail.

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Last updated: August 20, 2025

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Dutch regulator warns tax hike is harming legal gambling market

Rising taxes, falling protection

From safety to shortfall

How other European operators handled the taxes