Holland Casino in danger due to an increase in gambling tax?
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12 Jun 2024 •
Reading time: 2 minutes Holland Casino, the known Dutch state casino could be in serious trouble due to the gambling tax increase implemented by the government.
The increase in the gambling tax laid down in the main agreement could have major consequences for Holland Casino. This is evident from an analysis by various ministries. Not only Holland Casino but also the cultural sector the sports sector and the purchasing power of consumers can be affected by this measure.
One of the biggest concerns is the future of Holland Casino itself. The increased tax will affect the profitability of the casino, various ministries fear. In the most negative scenario, Holland Casino could even become loss-making. This could jeopardize the continuity of the casino.
State treasury grows, casino suffers
The increase in the gambling tax should generate an additional €202 million for the state treasury. However, for Holland Casino and the Dutch Lottery, this extra income actually means less profit for the state. The lower profits of state-owned companies will lead to lower payments to, among others, the sports sector and charities.
In addition to the direct consequences for Holland Casino, the ministries also fear indirect consequences for other sectors. For example, the increased gambling tax may lead to less sponsorship in the sports sector. The cultural sector could also be affected, because funds that are currently fueled by the gambling tax will have fewer resources available.
Consumer purchasing power under pressure
The analysis by the Ministry of Social Affairs and Employment states that the increase in the gambling tax together with other plans of the new cabinet could have a negative effect on the purchasing power of consumers. According to the Central Planning Bureau gambling companies would pass on the higher tax to their customers which will make gambling more expensive.
Future of Holland Casino uncertain
The future of Holland Casino has become uncertain due to the increase in gambling tax. The casino will have to make significant cuts and adjust its business operations in order to survive. It remains to be seen whether this will succeed. The negative consequences for the cultural sector, the sports sector and the purchasing power of consumers are additional points of concern.