Netherlands' gambling tax revenue surges to record €1 billion in 2024
According to recent data from Statistics Netherlands (Centraal Bureau voor de Statistiek, CBS), the Netherlands has witnessed an unprecedented surge in gambling tax revenue, reaching €1 billion ($1.07 billion) in 2024. The dramatic increase is primarily due to the rapid expansion of the online gambling sector, which was legalised in October 2021.
Steady growth since legalisation
Gambling tax revenue in the Netherlands has been on an upward trajectory in recent years. In 2021, the government collected €343 million ($369 million) in gambling taxes, significantly lower than the current figure. The lower revenue in 2021 was partially due to the temporary closure of land-based casinos during the COVID-19 pandemic.
CBS estimates that online gambling contributed approximately €400 million ($428 million) to the total gambling tax revenue in 2024. The Netherlands Gambling Authority (Kansspelautoriteit, KSA) reports that online betting now accounts for over one-third of the country’s gambling industry.
Consumer spending on gambling has also significantly increased. Measured as the difference between total stakes and prize payouts, consumer spending rose from €2.5 billion ($2.7 billion) in 2021 to €4.4 billion ($4.7 billion) in 2023, highlighting the sector’s rapid growth.
Tax adjustments to influence revenue and betting behaviour
The increase in gambling tax revenue is not solely due to the sector’s growth but also results from strategic tax policy adjustments. Traditional casinos and domestic online gambling operators are taxed on their net earnings, while lottery winners are subject to taxation on their prizes.
The gambling tax rate, which stood at 30.1 percent in 2019, saw a temporary reduction to 29 percent in late 2021 and 2022, when online gambling was first legalised. This rate was later raised to 30.5 percent in 2023. In January 2024, the tax rate increased further to 34.2 percent, with plans to raise it again to 37.8 percent in 2025. These adjustments aim to maximise government revenue while potentially curbing excessive gambling behaviour.
Regulatory reforms on the horizon
In addition to tax changes, Dutch lawmakers have proposed raising the legal age for high-risk gambling products from 18 to 21. The proposed reforms also include granting the KSA greater authority to prevent offshore gambling companies from targeting Dutch consumers.
