Dutch Gambling Sector Urges Review After €44m Decline In 2025 Tax Income

Dutch trade association VNLOK has sent a joint letter to the government warning that recent policy changes have caused a decline in tax income from gambling by €43.5m in 2025, compared with the previous year.

The letter was co-signed by an executive from fellow trade-body VAN Kansspelen and state-backed operators Nederlandse Loterij and Holland Casino. The signatories said recent tax increases have contributed to casino closures and a growing shift toward unlicensed gambling platforms.

The organisations asked the government to review the current gambling tax structure and present the findings to parliament within Q2 of the year.

The letter also states that future tax policy decisions must consider “the relationship between tax burden, illegal supply, player protection and contributions”.

Rising Gambling Taxes Introduced In Two Phases

The Netherlands implemented a phased increase in gambling taxation from January 2025, introducing a rate of 34.2% on GGR.

The trade body estimated that overall GGR during the first half of 2025 had declined by 25% compared with the same period in the previous year.

A second tax increase came into force in January this year. The latest change raised the rate to 37.8% of GGR, one of the highest in Europe.

Trade Bodies Warn Of Black Market Growth

The joint letter argues that the higher tax burden has created conditions encouraging players to opt for the black market.

“The measure has undesirable effects on player protection, illegal supply and the financing of sport and charities,” the letter notes.

The organisations stressed that the issue should be examined before an upcoming discussion within the government’s tax committee scheduled for 12 March.

The letter also refers to recent figures published by the Dutch regulator Kansspelautoriteit. According to those findings, unlicensed gambling platforms generated more GGR than licensed operators during the first half of 2025.

New Coalition Government Plans Tougher Gambling Policy

The warning comes shortly after the Netherlands formed a new coalition government made up of the D66 Party, the Christian Democrats, and the VVD Party.

The coalition agreement outlines a stricter stance toward the sector, with the government planning to ban gambling ads. 

“We are strengthening the duty of care of online gambling providers, cracking down on illegal gambling sites, and introducing a complete advertising ban on online gambling. We are exploring limiting the number of licenses for online gambling sites,” it said in February.