The Kansspelautoriteit has been one of the strictest gambling regulators, consistently demonstrating a willingness to revise decisions and acknowledge shortcomings.
While the German Gambling Regulator has pushed back against accusations that its policies are leading to the deepening of illegal gambling in the country and sapping the competitiveness of the licensed gambling sector, the Dutch counterpart has been prepared to admit as much in the face of solid evidence.
Dutch Gambling Authority admits serious mea culpa in tax policy
Following a proposed tax increase that took place on January 1, 2025, and pushed the levy from 30.5% to 34.2%, the Kansspelautoriteit has agreed with early estimates, backed by trade groups such as VNLOK, that the measure may indeed be counter-productive, and has already made it harder for operators to operate locally.
Kansspelautoriteit Chairman Michel Groothuzien admitted as much in a statement that was published on the regulator’s official website.
"The measures we have taken to offer players more protection have made it financially more difficult for providers. This has led to a decrease in the BSR for the entire market. Consequently, gambling tax revenues have also decreased."
The regulator went further to acknowledge that increasing taxes on the gambling industry is what it considers to be "at odds" with achieving its far more ambitious goal of offering players a better level of protection.
"If we want to offer players a protected gaming environment in the future, this requires serious, responsible providers. A financially sound, legal market is essential for this," the statement read.
Black market empowered, regulator aware of what it needs to do to protect players
The regulator similarly argued that, due to the tax increases, more regulators were now forced to take extra measures to remain not only operational but also competitive in the face of an encroaching black market.
Not only that, but 50% of the total gambling spend in the country is now placed with offshore operators, which means that despite the 90% channelization achieved by the Netherlands, half of the total spending is going abroad.
While there has been a €30m loss in tax contributions to the state coffers in H1 2025, VNLOK estimates that this will increase to €200m by the end of the year.
