Date: 17.09.2024

by Bartosz Burzyński

Dutch government confirms two-step gambling tax increase. Flutter withdraws Tombola brand

Our earlier reports on planned tax hikes for gambling operators in the Netherlands have been confirmed. The Dutch coalition government announced a two-step increase in taxes on gambling revenue, forcing major companies like Flutter Entertainment to withdraw from the market.

New taxes on the Dutch market

The Netherlands’ new conservative coalition government has announced a two-step approach to increasing taxes on revenue generated by gambling businesses. This was confirmed during the presentation of the 2025 Budget by Finance Minister Eelco Heinen and Prime Minister Dick Schoof.

As anticipated, taxes on gambling revenue will rise from the current 30.5% to 37.8%. However, the Ministry of Finance will implement this increase gradually. The tax will first rise to 34.2% in 2025, with the final increase to 37.8% in 2026. This two-step approach is designed to give the gambling industry time to adjust to the new financial conditions.

The 2025 Budget states: “This government considers healthy public finances crucial, and will be implementing a number of measures outlined in the coalition agreement, as well as additional actions to absorb financial setbacks. As such, the tax on games of chance will be increased in two steps, to 34.2% in 2025 and to 37.8% in 2026.”

The tax increase on gambling businesses will also lead to the government discontinuing the tax on customer winnings exceeding €449 from lotteries or casinos in the Netherlands.

Government Warnings to the Sector

Before the budget announcement, the coalition government, comprised of the Freedom Party, VVD, NSC, and the Farmers Movement, had previously warned the gambling sector of “structural tax increases” as part of its governing mandate. These changes have been met with criticism from some operators, including the Dutch National Lottery.

Dutch National Lottery’s Opposition

The Dutch National Lottery urged the government to exempt lottery revenue from the tax hike, arguing that it should be classified as “soft gambling,” which does not carry the same risks as casinos or slots. The operator also expressed concerns that the tax increase would reduce its funding for sports programs through the Netherlands Olympic Committee (NOC), potentially affecting support for both professional and amateur sports.

Holland Casino’s Struggles

The tax hike will particularly impact Holland Casino, which will need to reorganize its operations to avoid losses. The company must generate an additional €100 million to offset the new tax burden. As a result, Holland Casino plans to reduce operating hours at its Rotterdam and Amsterdam locations starting in 2025, with further branch closures also being considered.

Flutter Entertainment Withdraws from the Dutch Market

The tax hikes and new deposit limits have also prompted a response from one of the largest gambling companies, Flutter Entertainment, which announced its withdrawal of the Tombola.nl brand from the Dutch market. Flutter stated that the new regulatory conditions under the Remote Gaming Act (KOA Act) were no longer sustainable for operating its bingo brand in the Netherlands.

Our earlier reports from two months ago, suggesting that major gambling companies might exit the Dutch market, have now been confirmed, with Flutter Entertainment’s decision serving as clear evidence of this shift.