KSA admits an increase in game taxes having a negative effect on income
The Netherlands Game Authority (KanssssessssssssssssssssssssssssssssSspelautorites or KSA) has admitted that its plans to hike tax on the game do not work as expected. The KSA had increased the game tax of January 1, 2025 to 34.2%, going from 30.5%, with the intention of “increasing government revenues”.
However, the game income or the gross result of the game (BSR) fell in response to the increase. With a higher percentage withdrawn from gains, it seems that Dutch players simply decreased their game, resulting in a global drop in tax revenue due to the decision.
“The measures we have taken to offer players more protection have made more difficult for suppliers. This led to a drop in the BSR for the entire market. ” – Michel Grooothuizen, president of the KSA
This has bitten both physical and terrestrial games and online games of chance. In particular the locations of brick and mortar, which the Netherlands watchdog says that it has experienced an “accelerated decline”, with a drop of 9% compared to the “last quarter of 2024.” The online game was not so seriously affected, integrating the decline by its flexibility.
Since terrestrial places will have to join the stricter rules, it is more difficult to adjust, which the KSA admits “the possibilities are limited”. Online platforms can simply change the figures if necessary, which could increase benefits despite the increase in the tax.
The report itself reveals that 96% of the points of sale were reported to the watchdog with data. However, while carrying out research, it has been found that from the cocovio pandemic, income has decreased. He describes financial difficulties, in particular a ban in 2020 to smoke in casinos, as one of the factors of a drop in overall income.
Some operators have cited online platforms winning the prevalence, while increasing the costs for staff and the “implementation of the central register to the exclusion of games (Cruks)”. This is the program that requires checks to ensure that a person is not prohibited to play.
The president of the KSA comments on the results
Speaking in the press release, Michel Grooothuizen, president of the KSA, said:
“The measures we have taken to offer players more protection have made more difficult for suppliers. This led to a drop in the BSR for the entire market.
“This has also reduced the income tax income. The KSA has already indicated that it would be the effect. A financial measure as a game tax is in contradiction with the political objective to offer players more protection.
“If we want to be able to offer players a protected game environment in the future, it supposes serious and responsible suppliers. A financially solid legal market is essential for this.”
Star image: Composite image with the Kansspelautorite logo
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