The Netherlands Records €1BN Record-Smashing Gambling Tax

As per information from Statistics Netherlands (Centraal Bureau voor de Statistiek, CBS), the body in charge of publishing “reliable and consistent statistical information” that responds to the demands of society, collected revenue from gambling taxes smashed all records in 2024 in the Netherlands, reaching an unprecedented €1 billion ($1,07 billion). 

The impressive figure was mainly explained as a direct consequence of the fast pace at which the online gambling sector has expanded in recent years. 

The European country gave the green light to online gambling in October 2021. 

Incredible Jump From €343M in 2021

In the last few years, gambling tax revenue recorded an important upward trend in the Netherlands, most noticeable by looking at the 2021 numbers when the Dutch government collected €343 million ($369 million). 

The lower revenue in 2021 was partly due to land-based casinos being temporarily shut down during the COVID-19 pandemic.

According to CBS reports, last year, online gambling brought a contribution of approximately €500 million ($538 million) to the total tax revenue. 

The Netherlands Gambling Authority (Kansspelautoriteit, KSA) says online betting currently represents more than one-third of the gambling industry. 

The financial impact of the legalization of online gambling is also clearly noticed in figures that talk about consumer spending on gambling. 

The respective indicator, which is determined as the difference between stakes and prize payouts, has skyrocketed from €2.5 billion ($2.7 billion) in 2021 to €4.4 billion ($4.7 billion) in 2023. 

Tax Adjustments, Essential for Stimulating Gambling Revenue

Tax policy adjustments have also played a crucial role in shaping gambling revenue, according to CBS. 

For traditional casinos and domestic online gambling platforms, operators are taxed on their earnings, defined as total stakes minus payouts. 

In contrast, lottery winners are subject to taxation on their winnings. 

In 2023, the gambling tax stood at 30.5%, a slight increase from 30.1% in 2019. Only winnings exceeding €449 ($483) are subject to taxation in the county. 

When online gambling became legal, the tax rate was temporarily lowered to 29% for late 2021 and 2022, while the €449 threshold was also briefly eliminated.

At the beginning of this year, the tax rate went up even more to 34.2%, with plans for a further increase to 37.8% in 2025 in an attempt to capitalize even more on the booming gambling market while potentially curbing excessive betting behavior.

Last month, we reported on the Dutch lawmakers’ proposal to raise the age limit for high-risk gambling products from 18 to 21 while also giving the KSA additional powers to stop offshore companies from offering their services to domestic players.