Dutch Gambling Firms Worry About 25% Decline in Gross Gaming Revenue
In a significant turn of events, the gambling industry in the Netherlands is experiencing a 25% decline in revenue for the first half of 2025, compared to the same period in 2024. This drop is primarily attributed to the implementation of government restrictions, including deposit limits, on players in the legal online gambling market.
The Dutch government's Remote Gambling Act, which came into effect on April 1, 2021, aimed to legalize and regulate online gambling, creating a controlled market with responsible gaming measures. However, these regulatory measures have also restricted the total spend allowed per player, contributing to the significant decline in Gross Gaming Revenue (GGR).
The deposit limits, introduced to protect consumers, have limited the spending capacity of players, leading to reduced turnover and thus lower GGR for licensed operators. The legal market, despite expectations of growth, has seen a shrinking GGR, suggesting that these restrictions have had a cooling effect on overall revenues.
The Kansspelautoriteit (KSA), the gambling regulator in the Netherlands, is set to release official figures this week that will showcase the discrepancy in the gambling market. These figures are expected to reveal the impact of the government's restrictions and the increase in tax on the gambling industry in the Netherlands.
The tax rate on GGR in the Netherlands is set to increase to 37.8% of GGR next year due to another 3.6% rise. This increase is expected to lead to a €200m ($231m) shortfall for the year in the Netherlands. Operators believe that bigger spenders have transitioned to offshore gambling sites due to the stricter deposit limits.
The decrease in GGR is also attributed to the government's restrictions on the legal market in the Netherlands. The deposit limits, effective as of the current month, prohibit individuals from depositing over €700 ($800) per month or €300 ($346) if they are 25 years old or younger.
The gambling industry's trade body in the Netherlands, the Licensed Dutch Online Gambling Providers (VNLOK), holds this view. The official figures to be released by the KSA this week will likely highlight the discrepancy in the gambling market in the Netherlands.
The tax intake from the gambling industry in the Netherlands for the first half of 2025 is expected to be approximately 83% of 2024's level. This shortfall in tax intake is a result of the increase in the tax on GGR.
In summary, the 25% drop in GGR is linked to stricter government-imposed deposit limits and gambling restrictions in the Netherlands’ legal market, which have curbed player spending and overall revenue generation during the first half of 2025. These controls prioritize safer gambling practices over maximizing short-term revenue, causing a contraction in the legal sector’s GGR compared to 2024 levels.
The Dutch government's decision to implement deposit limits as part of the Remote Gambling Act has contributed to a 25% decline in Gross Gaming Revenue (GGR) for the licensed operators in the casino-and-gambling industry. As a result, the tax intake from the industry is expected to be approximately 83% of 2024's level, largely due to the increase in tax on GGR.
