Authorities in the Netherlands are set to roll out a proposed tax increase for gambling operators. The move comes despite pushback, with critics maintaining that a Netherlands gambling tax increase could see some companies cease operating in the country.
In this article, we explore the Netherlands gambling tax increase in more detail and examine the potential impact the move could have on operators moving forward. Read on to learn more.
Detail of the Tax Increase
The Netherlands gambling tax increase was proposed to and agreed upon by the country’s coalition government in May 2024. Currently, the gambling tax in the country is set at 30.5% of GGR. With this increase, this figure will rise, not insignificantly, to 37.8%. According to financial forecasts, the tax hike will generate additional annual revenue of $219.6m.
The increase will be staggered and rolled out in stages to give operators time to adjust. This first stage will come into effect in January 2025, when the tax will rise to 34.2%. The final stage will roll out in January 2026, when the tax will rise to its final total of 37.8%.
The increase will apply to all regulated forms of gambling in the country, including land-based casinos, lotteries and online casinos.
What Have the Critics Said?
While the Dutch government is evidently all for the tax increase, largely because of the additional revenue opportunities it will offer, there has been considerable pushback from the gambling industry.
Consulting firm Atlas Research looked into the Netherlands gambling tax increase and analysed the potential impact it could have on the industry. In its report, Atlas Research issued a warning that the tax hike could leave some operators with no other choice but to leave the Netherlands.
Further warnings outlined the possibility that operators pass on the cost increase to players. As a result, this could see players turn to black market operators instead, if they are priced out of legitimate options.
Holland Casino, a state-owned operator, also voiced concerns about the tax increase. The company revealed that it could be forced to close down retail locations or curtail online services in the face of the hike.
What Does this Mean for Operators?
The global gambling industry is in a state of constant flux. While gambling-related laws are being relaxed in some jurisdictions, other regions are going in the opposite direction and tightening regulations. The Netherlands gambling tax increase comes just over a year after the country voted to ban gambling advertisements.
These new rules could be indicative of a cultural shift in the country, and operators must be prepared to review and update their compliance processes to ensure they are in line with the new rules. Furthermore, operators must ensure they are flexible and versatile, able to adapt to new regulations while minimising disruption to their business.
Conclusion
The Netherlands gambling tax increase is set to come into effect fully by 2026. This is despite heavy criticism from key industry figures and concerns from some that the increase could give a boost to the black market. The staggered rollout of the increase will give operators time, but they must ensure they are fully prepared to meet these new tax demands.
