Following a Woo request, the Ministry of Finance in the Netherlands has released part of the communication between the government and Holland Casino regarding payment percentages.
These documents show that Holland Casino has been warning the government since 2023 about the possible consequences of an increase in gambling tax, as well as about the consequences of a possible reduction in the Return to Player (RTP).
What does a Woo request mean?
A Woo request is a request based on the Open Government Act (Woo). By submitting such a request, information can be requested from the government regarding certain decisions that have been taken or which communications have been made regarding a certain subject.
The government is required to share this information unless the information is strictly confidential or contains secret content. In this way, government information can become more accessible to the public.
Request yielded 14 documents
The applicant (who is often anonymous in a Woo request) asked for all communications between the Ministry of Finance and Holland Casino N.V. regarding the payout percentages and odds of sports betting.
This request concerned both physical establishments and Holland Casino online, and this with regard to the period from January 1st, 2020 to February 18th 2025. It yielded fourteen documents including memos from Holland Casino to the ministry, notes for ministers, emails between civil servants, meeting agendas and financial appendices. Only the Analysis of management measures was (partially) undisclosed.
Consequences of increasing gambling tax
The documents that were available for inspection indicate that discussions have been taking place since 2023 on the financial and policy consequences of increasing the gambling tax from 30,5% to 37,8%.
Holland Casino wanted to map out the consequences and calculated that the increase would result in an increase in the tax burden, up to 28 million euros for the slot machines. According to them, the gross gaming result would then have to increase by approximately 12% to compensate for this. However, this was considered unrealistic.
Holland Casino warns of negative consequences of tax burden
Holland Casino warns in memos that calculating gambling tax is difficult and that it can’t be compered with excise duties or VAT. Measures such as lower RTP, higher table minimums or entrance fees maybe have an effect, but according to them, it would lead to shorter playing time, a decrease in customer satisfaction and a shift towards illegal or foreign providers, which must be avoided at all times since there is no regulation or protection.
Lowering RTP affects gaming experience
Holland Casino considered an adjustment to roulette by adding a second zero which would increase the house edge from 2,7% to 5,4%, but was considered unattractive to players. Nevertheless, a pilot was started with a second zero.
In slot machines, the reduction of the RTP has less visible consequences, but also has an influence on the gaming experience. Holland Casino therefore emphasized its social responsibility by warning of possible side effects such as an increase in gambling addictions, lost innovation and the fact that players will move to illegal providers.
General conclusion from Holland Casino: The increase in gambling tax is completely at odds with the current gambling policy.
Holland casino objected against disclosure
Holland Casino was asked to give their opinion on certain documentation before it was made public. The casino objected to the publication of specific information such as data on house percentages (the margin the casino has) and internal analyses. The ministry agreed and decided not to release that information.
Loss due to high gambling tax
Holland Casino ended 2024 with a loss of 10,4 million euros, mainly due to the higher gambling tax that put pressure on their physical casinos and the online activities. Both the current tax increase and the planned increase to 37,8% in 2025 make the business model less and less feasible.
They fear a liquidity shortage from the beginning of 2027 if nothing changes. Although the number of visitors at the physical casinos increased slightly, the income per visit decreased and the online turnover also decreased sharply. In the 2024 annual report, accountants warn therefore for the consequences starting at the beginning of 2027.