Dutch Gambling Monopoly Warns of “Vulnerability” Amid Tax Hike Proposal
Dutch state-owned gambling operator Holland Casino has issued a stern warning about the potential consequences of a proposed increase in gambling taxes.
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The corporation chief financial minister Ruud Burgervet has expressed concern about the vulnerability of the monopoly after a first half of the year characterized by rising operating costs and inflation.
Four political parties have joined hands to propose a tax increase that would raise the gambling tax rate from 30.5% to 37.8% in 2025. This action could result in an additional €202 million in tax income each year.
Holland Casino’s performance has already been significantly affected by the 1% increase in gambling tax scheduled for 2024. A net loss of €3.5 million for the six months ended June 30 was partly caused by this.
Holland Casino’s CEO Petra de Ruiter has strongly objected to the proposed tax increase, claiming it would prevent the casino from making a profit. She described the 7.3% increase as irresponsible and issued a warning, stating that it would increase the company’s total tax burden by around 50%.
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De Ruiter has outlined that unlike supermarkets, the business finds it difficult to pass on price increases to consumers. As a result, Holland Casino may have to adopt “undesirable” strategies to remain profitable, such as pushing for more spending, aggressively acquiring new players, or cutting prize pools.
Holland Casino may find it more difficult to fund activities that promote responsible gaming and preventive measures as a result of the proposed tax increase.
Holland Casino’s turnover decreased by 2.4% to €395.4 million in the first half of the year. Despite growth in some categories, including catering and retail slots, overall branch turnover was slightly down. Additionally, online revenue fell by 14.7%.
The 1% tax increase caused Holland Casino’s expenses to increase by €3.7 million, while personnel costs increased by 11%. Nevertheless, the business was able to save €5.4 million in operating costs.
Burgervoet has drawn attention to Holland Casino’s weak financial position and isued a warning that further cost increases could put the business in a loss-making position. He stressed that to maintain the company’s financial stability, large cost increases must be avoided.
