The online betting market in the Netherlands shrinks by 16% after the government raises taxes.

The Dutch gambling regulator, Kansspelautoriteit (KSA), reported a 16% drop in gross gaming revenue (GGR) for the regulated online sector in the first half of 2025, compared to the same period of the previous year. The total value was approximately €600 million, as disclosed in the Autumn Market Report. This is the first annual reduction since the market opened in October 2021.

The decrease in revenue occurs in a context of more restrictive measures implemented by the Dutch government. Among the main changes are the increase in the tax rate, which rose from 30,5% to 34,2% as of January 1st of this year, and the imposition of stricter limits on deposits introduced in the second half of 2024.

The current decline intensifies a trend that began to manifest itself last year. In 2024, although the sector recorded annual growth of 6%, reaching €1,47 billion, there were already signs of a slowdown, with a 10% reduction in revenue in the second half of the year compared to the first.

Despite the drop in revenue, the number of player accounts showed a slight increase, rising from 1,18 million in the second half of 2024 to 1,29 million by the end of June 2025. However, the average spending per player decreased significantly.

Average monthly losses per user have fallen from €146 at the end of 2024 to €119 in the current period. KSA attributes this reduction mainly to the new deposit restrictions implemented last year.

The report also points to a possible migration of players to unregulated platforms. The proportion of licensed GGRs compared to the mainstream streaming service decreased from 51% in December to 49% in January, which may indicate growth in the illegal market.

The land-based gambling sector is also suffering from the new policies. In the first quarter of 2025, there was a 9% year-on-year reduction in the number of gambling establishments, accelerating the average decline of 6% per year observed between 2020 and 2025.

The outlook for the coming years is for this downward trend to continue, as the tax rate on gambling in the Netherlands is scheduled to increase even further, reaching 37,8% in 2026.

In previous years, the Dutch online gaming market had demonstrated strong growth. In 2023, the sector's gross revenue increased by 28% compared to the previous year, totaling €1,39 billion.

The KSA had already warned that the increase in taxation on gambling from January resulted in a drop in tax revenue, contradicting the initial objective of the measure, which aimed to increase government revenue.