KSA report says gambling tax hike poses risk to player protection
Summary
The Dutch gambling regulator Kansspelautoriteit (KSA) warns that recent gambling tax increases are undermining player protection and driving business choices that may push players towards illegal operators. The tax rate rose from 30.5% of GGR to 34.2% on 1 January 2025, with a planned increase to 37.8% in 2026. The KSA’s impact assessment estimates 2025 gambling tax receipts will be about €40m (5%) lower than 2024, contrary to government expectations.
The regulator links the fall in gross gaming revenue (GGR) to both the tax rise and stricter player-protection measures introduced in October 2024, including monthly deposit limits. Online operators are left with around 12% less to cover costs after tax; land-based operators around 10% less. Under the current regime an operator’s profit on €1m GGR falls dramatically compared with the previous rate and would turn into a loss if the 2026 rate is applied.
Key Points
- • The gambling tax rose to 34.2% in Jan 2025 and is scheduled to reach 37.8% in 2026.
- • KSA projects 2025 tax receipts will be €40m (5%) lower than 2024, not higher.
- • Online GGR fell 8% in Q1 2025 versus Q4 2024; after tax operators have 12% less to cover costs.
- • Land-based GGR dropped 4% in Q1 2025; operators now have about 10% less post-tax to cover costs and some venues have closed.
- • KSA warns the squeeze may lead operators to reduce payouts, cut bonuses or marketing, or exit the market – actions that could boost the black market.
- • Channelisation by GGR has declined (legal platforms made up 51% of GGR in early 2025) as higher-value players may shift to illegal sites to bypass deposit limits.
Context and relevance
The report sits at the intersection of fiscal policy and gambling regulation. It highlights a policy paradox: measures intended to protect players (deposit limits, stricter rules) combined with higher tax burdens can financially weaken licensed operators, reducing their capacity to provide safe, regulated services. For policymakers, operators and compliance teams across Europe, the KSA findings are a warning that taxation and protection measures must be calibrated to avoid driving players to unregulated alternatives.
Why should I read this?
Short version: if you care about safer gambling or run a regulated gambling business, this matters. The KSA spells out how tougher taxes plus protection rules are squeezing legitimate operators and could unintentionally boost the black market. It’s a quick take on why policy choices have real market and consumer-safety consequences – saved you the deep dive.