Holland Casino reduces profit opportunities due to increased gambling tax
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17 Dec 2024 •
Reading time: 2 minutes Holland Casino, the Dutch provider and part of the government, will respond in its own unique way to absorb the increase in gambling tax. From now on, drinks in the casino will become more expensive, and the chances of winning at the roulette table will decrease due to the addition of a 00.
Cabinet with increase in gambling tax
It was previously revealed that the Dutch cabinet is implementing the tax increase from 30.5 to 34.2% on the income from gambling. Even though HC is owned by the state, they report that the company says it will lose an extra 30 million euros to the Tax Authorities. Earlier, CEO Petra de Ruiter indicated that they felt compelled to participate in aggressive advertising and less gambling prevention in order to absorb the negative consequences. The government company was therefore criticized in public opinion.
Top executive Petra de Ruiter calls these statements in the FD. “clumsy”. She wanted to send a signal, but then it became too much about aggressive advertising, according to her. Now De Ruiter is announcing other drastic measures. For example, Holland Casino is going to make major cuts in its own costs.
At the head office, 1 in 5 euros will have to be saved. This will result in a major job loss at the head office, but the restaurant prices of the local branches will also be tightened. This should lead to a closing of the financial gap by 1/3.
Roulette Double zero is coming
The first step to bring money back into the coffers is to add the double zero to the Roulette table. In this way, the chance of winning will decrease slightly and you will no longer have a 1/37 chance, but 1/38.
Experts wonder whether this is the solution:
“When players win less, they are more likely to go home faster, which does not necessarily result in higher profits”
spokesperson Holland Casino
This of course makes it more difficult to remain attractive to players, so this is first a pilot that will be tested. The size of the test is not yet known.
New increase in Gaming Tax (KSB)
The government only announced this increase in a series of further increases.
“The continued existence of Holland Casino will be at stake if this increase goes ahead.”
Petra de Ruiter
Earlier, we also saw a bloodbath at Fair Play and other operators who were forced to close many gaming halls and lay off staff. We wonder whether this is the intention of the Dutch government?
De Ruiter first wants to talk to her shareholder, the Ministry of Finance, about the impact. “Hopefully, Finance will then reconsider the further tax increase,” she tells the FD.