Netherlands Faces Revenue Shortfall Amidst Gambling Tax Increases

In 2025, the Dutch government raised the tax rate from 30.5% to 34.2%, and starting this year, it was raised again to 37.8%. Although an additional €108 million in gambling tax revenue was projected for 2025, the actual figure was only €2 million higher. For 2026, the government projected additional revenues of €216 million, but only €57 million were collected.

The report notes that a significant side effect is a decline in revenues from state-owned gambling operators, "which means that the government's additional revenues are even smaller."

This latest report was published after the Dutch government revealed plans to introduce a blanket ban on gambling advertising, going one step further than the current restrictions.

“The tax revenue forecast in the Netherlands has not materialized because higher taxes mean less competitiveness against the illegal market. Unfortunately, by creating such unbalanced regulations, countries themselves drive players toward the illegal sector. Tax rates must be proportionate to the market size, development speed, the share of the shadow economy, and the actual ability to access unlicensed sites, among other factors,” stated Līga Līce, Executive Director of the Latvian Licensed Gambling Association (LLAB). She also emphasized that this effect will be further exacerbated by a complete advertising ban, something that has already been seen in Latvia.

Alongside debates regarding the impact of tax increases and advertising restrictions on the legal market, discussions are also taking place about the unregulated sector.

Earlier this week, the Netherlands' gambling industry association VNLOK announced that it is suing Meta—also involving the European Commission—over the presence of illegal gambling advertisements on platforms like Facebook and Instagram.

“LLAB will definitely follow this litigation closely. In Latvia, advertisements for illegal gambling operators are also visible on social networks, and a large portion of players who choose illegal games admit they find out about them online, including through social media,” Līce emphasized.