Holland Casino Faces Financial Strains Amid Tax Increases Despite H1 Growth
Holland Casino’s chief financial officer, Ruud Bergervoet, recently highlighted the precarious financial situation of the company, primarily due to an impending increase in gambling taxes in the Netherlands. Although the operator reported year-on-year growth during the first half of 2025, the planned tax changes are casting a long shadow over its future prospects.
The Dutch government is enforcing a two-stage hike in gambling tax that commenced on January 1, 2025. The tax rate will rise from 30.5% to 34.2% of gross gaming revenue, with a further increase planned to 37.8% starting from January 1, 2026. This poses significant challenges for Holland Casino, which is still adapting to the effects of the initial hike.
Bergervoet expressed his apprehensions regarding the potential impact of the second wave of tax increases. He explained that had the higher tax rate been applied in the first half of the year, it would have drastically reduced profitability. Specifically, at the current tax rate of 34.2%, the operator faced an added expense of €13.5 million during this period.
He noted, “The financial pressure remains high, especially with the upcoming increase in 2026. With the 37.8% tax rate in place, we would have reported a profit of merely €1.1 million, or a loss of €5.5 million without our one-time revenue from property sales."
A Silver Lining: Property Sales Offset Financial Strain
In light of these financial challenges, Holland Casino benefited from the sale of two properties, generating €8.7 million from a location in Zandvoort and an additional €2.7 million from the sale of its former site in Groningen. This combined revenue provided a much-needed boost of €6.6 million to the company’s profitability.
For the first half of 2025, Holland Casino reported a slight decline in overall revenue, totaling €390.9 million. While in-person casino visits saw a modest uptick of 0.7%, reaching 2.6 million, online revenues experienced a downward trend. This decline is attributed to new player protection policies implemented last October, which set stringent limits on monthly deposits, impacting the online gambling sector significantly.
Despite these obstacles, Holland Casino made strides in managing its expenses, achieving a reduction of €30.1 million through cost-saving initiatives, including a restructuring at its headquarters. Consequently, the firm reported a profit before corporate tax at €14.2 million, a marked improvement from a loss of €3.5 million in the previous year, aided by both the property sales and efficient cost management.
The Broader Economic Implications of the Tax Hike
While the government aimed to increase revenues through the tax hikes, early indications suggest the strategy may backfire. A report from the Dutch publication Financieele Dagblad indicated that gross gaming revenues in the first half of the year plummeted by 25% compared to the previous year, contrary to the government’s expectations. As a result, the Kansspelautoriteit anticipates tax revenue for this period will only be 83% of what was collected the previous year, despite introducing the new, higher tax rate.
The Ministry of Finance anticipated an additional €200 million annually from 2025 to 2028 due to these tax increases, but recent trends raise questions about the feasibility of that projection. As Holland Casino navigates a complicated landscape, the interplay between regulatory changes and the industry’s financial health remains a critical focal point moving forward.