Netherlands Gaming Sector Demands Urgent Tax Reform as Revenue Plummets by €44 Million Following Steep Hikes

Dutch gambling trade bodies warn the government that a 37.8% tax hike has backfired, causing a €44m revenue drop and driving players to illegal sites.

By: AXL Media

Published: Mar 9, 2026, 12:06 PM EDT

Source: The information in this article was sourced from iGaming Business

A Joint Call for Fiscal Realism in the Dutch Market

The Dutch gambling industry is in a state of open revolt against the government's fiscal policy, following the release of a joint letter from the sector's most prominent stakeholders. Led by the trade body VNLOK and co-signed by executives from VAN, the Netherlands Lottery, and state-supported Holland Casino, the letter warns of a significant "revenue paradox." Despite the government's intent to increase state coffers through higher taxes, the actual tax income from the gambling sector is forecast to have fallen by €43.5 million in 2025 compared to previous years. This decline has prompted an urgent demand for a formal tax review to be submitted to Parliament no later than the second quarter of 2026.

The Migration to the Black Market and Player Protection Risks

One of the most alarming revelations in the industry's appeal is the reported shift of consumers toward unlicensed gambling platforms. The phased tax increase, which reached a staggering 37.8% of GGR this January, has made the Netherlands one of the most expensive jurisdictions in Europe for licensed operators. Stakeholders argue that this high tax burden forces licensed sites to offer less competitive odds and implement more friction-heavy user experiences, inadvertently pushing players toward the "black market." Recent data from the KSA regulator supports these concerns, indicating that illegal sites recorded higher GGR than their licensed counterparts in the first half of 2025.

Impact on National Charities and the Sports Ecosystem

Beyond the balance sheets of operators, the tax hike is having a tangible impact on the social fabric of the Netherlands. The letter notes that the reduction in licensed GGR—estimated to be down 25% in the first half of 2025—directly translates to lower contributions for national sports programs and charitable organizations. These entities rely heavily on the revenue sharing models of state-supported operators. The coalition warns that if the current tax trajectory continues, the funding gap will widen, leaving essential social initiatives under-resourced while illegal, offshore operators thrive without contributing to the Dutch public good.