Dutch gambling authority flags player protection risks from tax hike

The Dutch Gambling Authority (Kansspelautoriteit or KSA) is worried about the impact of the recent gambling tax increase in the Netherlands. Since January 2025, the tax on gambling company profits went up from 30.5% to 34.2%, with another rise to 37.8% planned for 2026.

However, a report from August 2025 shows that gambling revenue dropped significantly in the first half of the year. Online slot games saw a 29% fall in bets, and land-based casinos lost 9% of their locations in just the first quarter.

This drop is linked to higher taxes and new rules, such as deposit limits and income checks, meant to protect players. However, there’s now concern that legal gambling is shrinking while unsafe, unregulated options grow.

KSA Chairman Michel Groothuizen says higher taxes are making it tough for legal gambling companies to stay in business and protect players. Due to the pressure, many of these companies have cut down on ads and lowered payouts.

This leads some players to illegal gambling sites that offer better bonuses but don’t follow safety rules. In the end, the government gets less tax money, and players face more risk on unsafe platforms.

Potential effects on esports betting

Regarding the potential effect on esports, betting companies may spend less on supporting esports tournaments now that profits have been lowered. This would mean players see fewer free bets or special offers on these platforms.

The betting sites might reduce the number of esports games or events available to cut costs, and companies may offer worse odds to save money, which can ultimately lead to smaller payouts for players.

Some operators may choose to leave the Dutch market, as it may be too expensive for smaller companies to stay. If legal platforms become less attractive, more players could turn to illegal websites.

All of these will ultimately result in slower growth in esports betting. With less money, it could mean fewer improvements and less innovation in these services. Unregulated sites don’t follow strict rules, which could lead to weaker player protection, thereby making it harder to promote responsible gambling.