The Netherlands has spent the last few years trying to strike a balance between maintaining a profitable gambling industry and protecting consumers. But in 2026, the country took another major step that has the entire gambling sector talking. The Dutch government officially raised the online gambling tax rate again, pushing it to 37.8% of gross gaming revenue (GGR).

As an operator, you know very well that this is not just another policy update buried in government paperwork. It entirely changes the economics of doing business in this country. And this comes just after the rates were raised from 30.5% to 34.2% last year (2025). With the second phase of the increase taking effect in 2026, gambling brands now have to reconsider everything, from marketing budgets to player bonuses.

And if you’ve spent time exploring this market, you know how competitive it has become. Operators have worked hard to stand out, often using promotions like free spins or “gratis spins” to attract players’ attention. But with taxes and operational costs climbing higher, many companies may soon find it hard to maintain those aggressive promotional strategies. And mark you, those changes came just five years after the regulated market officially opened under the Remote Gambling Act.

At the time, the Netherlands positioned itself as a well-balanced jurisdiction where regulation would bring order to a previously fragmented online gambling space. But the pace of change has been anything but gentle since then.

Why does the government keep raising betting taxes

For a moment, think about how extensive the Dutch online gambling industry is. Can you believe that the industry’s GGR reached €4.3 billion in 2024 alone? For many governments, increasing taxation in such a sector may seem like a straightforward way to boost public finances. And that’s exactly what the Netherlands did.

The expectation was that the tax increases would bring in an additional €200 million annually between 2025 and 2028. And to just soften the blow on operators, the strategy was introduced in two stages. First came the increase to 34.2% in January 2025, followed by the jump to 37.8% in January 2026. At the same time, licence application fees were expected to increase from €48,000 to €61,300, as of April 2026.

For operators who are already in the market but would like to amend licence conditions, you’ll be required to pay a fee of €10,200, up from €8,000. Other fees, like non-incidental gambling, were also increased. In other words, the government views the online gambling industry as a potential source of revenue, which partly explains its recent move to increase the associated taxes.

Various industry stakeholders are concerned

Remember, online casinos rely heavily on bonuses and competitive odds to attract and retain players. Once taxes rise too sharply, operators often have limited options. They either absorb the losses themselves or pass some of the costs onto players. And, of course, when the play becomes expensive, players may resort to gaming on offshore platforms.

But according to industry trade body NOGA, “that is at the expense of the general policy objectives of the Dutch gambling policy, which are precisely aimed at consumer protection and the prevention of fraud, crime and gambling addiction.”

Elsewhere, figures from trade body VNLOK projected a 25% decline in the overall GGR in the first half of 2025, following that year’s tax hike. According to the institution, increased taxation could negatively affect player protection and the financing of sport and charities. If that’s not enough, the country’s gambling regulator, KSA, recently reported that the black market recorded a higher GGR than its regulated counterpart.

So, yes, increased taxation can lead to more revenue collection, but at what expense? In the Netherlands, that question is becoming harder to ignore. In fact, some analysts believe the policy may actually reduce long-term tax income if legal gambling activity declines. There’s also the issue of player protection. When gamblers move to illegal platforms, protecting them becomes challenging because those operators aren’t accountable to the Dutch regulatory framework.

So, what’s next for the industry?

Despite all the pressure, it wouldn’t be entirely right to assume that the Dutch online gambling market is collapsing. It’s still active and still generates significant revenue. But can it really remain stable under continued fiscal pressure? Of course, the intentions of the government to protect players and increase tax contributions are good.

For instance, the government recently collected €288 million as gambling tax revenue. This is a significant amount of money that can be used to fund public services such as healthcare, education and even addiction prevention campaigns.

But from an operator’s standpoint, those tax hikes could damage the regulated sector. In worst scenarios, the increases could make it harder for new operators to enter the Dutch market, which could reduce competition. But again, this market remains one of the most structured in Europe, and that stability carries weight for serious operators.

Tags: online gambling