Dutch Lottery Warns Higher Gambling Taxes Could Fuel Illegal Market

Concerns are mounting in the Netherlands over the government’s plan to raise gambling taxes once again, with Dutch Lottery CEO Arjan Blok cautioning that such a move risks pushing more players toward illegal operators.

The gambling tax, which was set at 30.5% of gross gaming revenue (GGR), was increased to 34.2% on 1 January 2025. A further rise, to 37.8%, is scheduled to come into effect in January 2026. However, many within the sector argue that this level is unsustainable and could have severe consequences for both consumers and the regulated market.

The debate echoes international concerns. In the UK, for instance, there have been protests and calls for intervention after the government raised the gambling tax on gross profits from 15% to 25%.

Blok has been outspoken about the risks of the planned Dutch increase, saying: “The umpteenth increase in the gambling tax drives players to the illegal market. Due to the high gambling tax in the Netherlands, our responsible offer is becoming less attractive.”

According to him, the financial burden inevitably falls on players. When taxes go up, operators are forced to reduce promotions, impose minimum wager thresholds, or introduce additional charges. He pointed to measures such as surcharges recently introduced by FanDuel in Illinois as examples of how companies pass on the pressure.

Blok stressed the dangers of this approach, noting: “Players look for a more financially interesting, illegal alternative, where they play without any protection.”

The Dutch Lottery chief warned that almost half of the market already consists of unregulated operators. “We offer games of chance, which means we have the task of protecting players. Moreover, more tax means less structural financial support for Dutch sports and charities, to which the proceeds of the Dutch Lottery go.”

In 2024, Nederlandse Loterij contributed €203.6m ($241m) to 18 charities focused on sport, health, and well-being. Blok argued that this level of support is jeopardized by further tax hikes.

Citing the government’s own budget data, he concluded: “Now that the Budget Memorandum also shows that the revenue from the gambling tax – despite increases – will decrease by no less than €263m, there is only one sensible choice: freeze the gambling tax and protect players against illegal offers.”

Backing up his warning, the Netherlands Gambling Authority (KSA) recently released findings that the 2025 rise to 34.2% has already contributed to reduced revenues and declining channelisation rates. 

By fLEXI tEAM