While the Dutch government thought it would boost its revenue by increasing gambling tax, the effect has proved counterproductive. Jo Bosch, director of Casino Peppermill in Heerlen, denounces a tax policy that is suffocating physical casinos and threatening the entire land-based sector.
On 1 January this year, the tax on gambling rose from 30.5% to 34.2%. A further increase is planned for January 2026, bringing the tax to 37.8%. The initial aim of this increase was to bring in an additional €100 million for the state coffers, but the latest tax increase has had the opposite effect: €40 million less in revenue, according to an official report by the Kansspelautoriteit (Ksa).
Jo Bosch, director of the Peppermill Casino in Heerlen, spoke out in De Limburger to denounce a tax policy that he believes threatens to ‘kill the goose that lays the golden eggs’:
“With the additional increase announced from 1 January, the government’s goose that lays the golden eggs is being slaughtered by that same government.”
Several establishments have already closed
Physical casinos, and more specifically gaming rooms, are on the front line. Due to extremely tight margins and incompressible operating costs, many did not survive the first tax increase.
In Limburg, several establishments have closed: Brunssum, Geleen, Heerlen, Maastricht, Valkenburg… and the list is growing.
Two giants in the sector have been particularly affected:
- Janshen-Hahnraths Group (Fair Play) has had to close several locations.
- JVH Gaming, parent company of Jack’s Casino, Flash Casino and Flamingo Casino, has closed 23 venues in direct response to tax pressure.
Jo Bosch explains that it is impossible to offset the increase by simply raising prices:
“You have to offer your visitors something. And increasing the price of a game – currently 20 cents – through indexation is not legally permitted. The current price per game dates back to 2002.”
In other words, operators can neither reduce their costs beyond what has already been done nor pass on the tax to customers. The consequence: a rapid erosion of profitability and the threat of the outright disappearance of the land-based model.
Decline in tax revenues
Online operators, which are better equipped technologically and more flexible in their management, are able to absorb part of the tax burden. But for physical casinos, there is no room for manoeuvre. Michel Groothuizen, chairman of the Kansspelautoriteit, acknowledges this:
“Player protection measures have made the financial situation more difficult for operators. This has led to a decline in tax revenues.”
This situation indirectly fuels a shift towards the illegal market, as Björn Fuchs, president of NVLOK and head of the Janshen-Hahnraths group, points out:
“Players are turning to illegal activities. The combination of excessive regulations and tax increases is having the opposite effect to that intended.”
A forgotten government promise
The sector’s resentment is growing in light of past promises. Before the legalisation of the online gaming market in 2021, the government had promised a 25% tax reduction for land-based casinos to compensate for their competitive disadvantage. This reduction never took place.
“Last October, the parties noted a shortfall of €200 million. The solution was simple: increase the tax on gaming. This is a total disregard for the commitments made,” laments Jo Bosch.
Call for a tax moratorium
Faced with this failure, the professional federations VNLOK and VAN Kansspelen are calling for a freeze on any further tax increases, scheduled for January 2026, and for an independent impact study to be launched.
Jo Bosch, for his part, is concerned that if the tax rises to 37.8%, there will soon be no legal casinos left in the Netherlands.