The Nederlandse Loterij has co-signed a letter raising concerns about the impact tax hikes have had on the Dutch gaming space.
A new tax framework for Dutch gambling was approved in late 2024, two years after the market was re-regulated under the KOA Act in October 2021.
This saw the tax rate on gross gambling revenue (GGR) increase from 30.5% to 34.2% in January 2025, and again to 37.8% in January 2026.
The Dutch gaming space has repeatedly warned that the tax increases would be counterproductive, driving customers to the black market and ultimately leading to operator revenue and tax contributions declining.
The Dutch tax drama
A letter written by the Netherlands Online Gambling Association (VNLOK) and addressed to the Standing Parliamentary Committee on Finance in the House of Representatives has been signed by the Nederlandse Loterij, Holland Casino Group and VAN Kansspelen Brancheorganisatie, another trade body.
In the letter, the VNLOK estimates that the Dutch gambling sector’s tax contributions were 13% less than in 2024, falling by €43.5m (£37.6m) from €322m to €288m. This is based on monitoring of VNLOK’s members, with the organisation representing the bulk of the Dutch online gaming industry.
The letter follows the revelation from the Kansspelautoriteit (KSA), the Dutch Gambling Authority, in August 2025 that the tax increase to 34.2% had not had the desired effect and that revenues had dropped due to operators’ mitigation measures.
Dutch gaming stakeholders have routinely argued that the tax increases would lead to an increase in black market activity. According to the Dutch Lottery-signed VNLOK letter, illegal online betting stands at €617m against €600m for the legal sector.
The trade body also estimates that Dutch sports has lost out on contributions of between €12.5m-€15m. This may be of particular significance to the Nederlandse Loterij, which like other national lotteries has a strong connection with the grassroots sports scene in the Netherlands.
Dutch stakeholders are now calling for a review of the tax framework, pledged by State Secretary for Taxation Eugène Heijnen, to take place no later than Q2 2026. VNLOK’s letter also calls for any findings from this review to be factored in during the August decision-making process.
The letter’s third and final request is that the relationship between tax, illegal gambling, player protection, and tax contributions be considered in future decision-making beyond August.
However, in the meantime the VNLOK letter suggests that the situation will get worse before it gets better. The trade body states that ‘tax revenues are expected to come under further pressure” due to both the tax framework and stricter regulations.