Government Gambling Tax Hike Backfires Spectacularly - Revenue Falls Far Short 😱

The Dutch government's decision to raise gambling taxes has backfired in a major way. Tax revenue from gambling has come in far below expectations, according to the Netherlands Gambling Authority (Ksa).

The gambling tax was increased from 30.5% to 34.2% in January of last year, and further raised to 37.8% in 2026. The measure was expected to bring in an additional 108 million euros in its first year. Instead, only 2 million euros of extra revenue was collected. For this year, the government had projected 216 million euros in additional income, but only 57 million materialized.

The tax hike has hurt state-owned gambling operations as well. Nederlandse Loterij paid 5 million euros less in corporate tax in 2025, and Holland Casino's contributions to the treasury also dropped significantly. Total losses to the national treasury are estimated at 16 million euros, rising to 34 million euros in 2026.

The Ksa also warns that the higher tax is driving gamblers toward the illegal market, as legal operators are forced to lower payout rates or reduce their offerings 😟.