The Dutch gambling authority, Kansspelautoriteit (KSA), has warned against the illicit distribution of gambling machines amid an increase in land-based closures.
Gambling tax hikes have left a long-lasting impact on the Dutch brick-and-mortar industry, forcing some branches across the Netherlands into closure.
Sector burdened by tax regime
Last September, finance Minister Eelco Heinen approved a 2025 Budget that included a phased out income tax increase to boost the country’s coffers.
PM Dick Schoof’s cabinet will raise the previous baseline of 30.5% GGR tax to 34.2% this year, with a subsequent increase to 37.8% set to take place in 2026.
According to the government, this would reduce gambling harm across the Netherlands by unlocking additional funds for research and treatment.
The fallout of this decision is already evident across the land-based sector. Holland Casino for example closed its venue in Zandvoort, in addition to reducing its operating hours across its Rotterdam and Amsterdam, citing regulatory pressures.
Petra de Ruiter, CEO of Holland Casino, commented: “For Holland Casino, the closure is essential to continue building a sustainable future for the company, in which we can continue to contribute to a safe and responsible gaming climate.”
JVH Gaming, another land-based casino behemoth on the Dutch market, also announced its plans to close 25 of its 87 gambling arcades in the country – including a potential complete phase out of its Flamingo Casino brand.
What’s next for slot machines
The KSA has reminded customers about the importance of a venue’s slot machines remaining within the regulated market after an eventual closure.
“It is important that buyers do not operate these slot machines without the necessary permits,” the regulator added.
To place and operate a slot machine within a physical establishment, the owner needs to be licensed by the KSA for such an activity.
The regulator remains vigilant of any potential misuse of slot machines, working closely with the Regional and National Information and Expertise Centres (RIEC) and police to track down illicit slot machine use, such as the recent police raid of an illegal casino in Hoogeveen.