Ksa: Increased gambling tax does not have the intended effect

(PRESS RELEASE) -- The Dutch Gaming Authority has carried out an impact measurement according to the consequences of increasing the gambling tax. As of 1 January 2025, the gambling tax has been increased from 30.5% to 34.2%. The purpose of this increase was to increase government revenue. The effect measurement of the Ksa shows that this goal is not achieved. Due to various developments, the gross game result (BSR) has fallen in both the online and in the country-specific market. As a result, despite the increase in gambling tax, tax revenues have fallen.

The increase in gambling tax leads to gambling providers having to take measures to maintain their profitability. This can be done in various ways, for example by reducing costs or increasing revenue. In the country-specific part of the market, the possibilities are limited. In doing so, the tax increase in particular puts this part of the market in particular in the same way. The Ksa currently sees a faster decrease in the number of venues. For example, the number of venues in the first quarter of 2025 decreased by 9 percent compared to the last quarter of 2024. In comparison, between 2020 and 2025, the number of venues decreased by an average of 6 percent per year.

The BSR has also fallen in the online market, partly due to the introduction of various measures such as the Responsible Operation Policy Rule 2024 and the Rules of Play Limits and more conscious playing behavior. However, the online market seems to have a little more room to absorb the decline in the BSR than land-based providers. This is because they have more opportunities to adjust pay rates and reduce other costs.

Michel Groothuizen, chairman Ksa, from his concern about the developments in the sector: “The measures we have taken to offer players more protection have made it more difficult for providers. This has led to a decline in the BSR for the entire market. This also reduced the income from gambling tax. The Ksa has already indicated that this would be the effect. A financially driven measure as a gaming tax is at odds with the policy objective of offering players more protection. If we want to be able to offer players a protected gaming environment in the future, it assumes serious responsible providers. A financially sound legal market is essential for this.”

The Ksa keeps a close eye on developments in the field of channeling online supply and the decline in the number of branches of the land-based supply.