Decrease in gambling tax income not swaying Eugène Heijnen from resisting policy alterations
The Netherlands is bracing for a significant decline in online gambling news, with estimates suggesting a decline of €40 million ($47 million) compared to earlier projections of growth. This revelation comes after the implementation of a two-step Turbotax hike and additional restrictions, as the Dutch government attempts to curb problem gambling and offset suspected declines in online gambling tax revenues.
Eugène Heijnen, the newly appointed State Secretary for Taxation, acknowledged a revenue shortfall in gambling news revenues, particularly from the online sector. Heijnen, who took office in early September, clarified that windfalls and shortfalls in tax revenue are reflected in the balance after policy is adopted.
The decline in online gambling news stems from a two-step Turbotax hike in the Netherlands: rates rose from 30.5% to 34.2% of GGR on 1 January 2025 and are set to climb again to 37.8% from 1 January 2026. The new tax policy, which also includes stricter deposit limits, advertising and sponsorship bans, and other regulatory pressures, has been implemented to address concerns about problem gambling and ensure responsible gambling practices.
VNLOK, a trade association, warned in August that the higher rate could create a €200 million shortfall in 2025. They attributed the downturn to the Turbotax hike combined with the new restrictions. In response, the Dutch government announced stricter online gambling regulations for 2025, including raising the minimum age for high-risk games from 18 to 21, introducing mandatory deposit limits with credit checks, and restricting online casino advertising to exceptional cases.
However, Heijnen stated that there are no plans to address the anticipated decline in online gambling news due to higher taxes. His statement implies that the revenue shortfall from gambling taxes is not a compensatory policy. VNLOK urged the government to revisit the current tax framework in response to the predicted news decline.
The first half of the year saw a 25% year-on-year drop in GGR, according to VNLOK. This decline is not a new concern, as it has been previously reported that the new tax policy could cut iGaming news by €40 million ($47 million). The Kansspelautoriteit (KSA) reported in August that the new tax policy could cut iGaming news by €40 million ($47 million), a significant decrease from earlier projections of a €100 million growth in GGR for 2025.
The implementation of these stricter regulations and Turbotax hikes has not come without controversy. Gambling minister Teun Struycken also departed his post in the wake of the new policies. Van Oostenbruggen's resignation was one of several resignations that occurred after Foreign Minister Caspar Veldkamp resigned over the government's decision to block sanctions against Israel amid the conflict in Palestine.
As the Netherlands navigates these changes in the gambling industry, it remains to be seen how the news shortfall will impact the overall tax revenue and the government's efforts to address problem gambling.
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