(AsiaGameHub) –   The Dutch Lottery has indicated that increased gambling taxes in the Netherlands have severely impacted the sector, leading to a reduction in funds generated for charitable causes. The lottery’s chief executive officer, Arjan Blok, cautioned that these tax hikes have diminished the competitiveness of the legal industry, consequently making the black market more perilous.

The Lottery’s 2025 Results Took a Blow

In a preface to the Dutch Lottery’s (Nederlandse Loterij) 2025 report, Blok commented on the lottery’s performance during that year. He stated that 2025 solidified the Dutch Lottery’s position as a business that balances entertainment, responsibility, and public benefit. He noted that despite industry challenges, millions of Dutch players continued to engage with the lottery’s offerings.

Addressing these challenges, Blok pointed out that increased public scrutiny of the gambling sector resulted in stricter regulations, which in turn reduced the lottery’s revenue potential. For context, the Netherlands raised its gambling tax from 30.5% to 34.2% a year prior and implemented another increase earlier this year, setting the tax rate at 37.8%.

Consequently, in 2025, the Dutch Lottery generated EUR 688.9 million ($798.7 million), representing a 5% year-on-year decline. The company reported a net loss of EUR 7.7 million ($8.93 million), a contrast to the EUR 30.9 million ($35.8 million) net profit recorded in 2024.

Lawmakers Should Reject Further Tax Hikes

Blok explained that higher taxes have made legal gaming less competitive, as it can no longer offer appealing prizes and gaming options. This situation has inadvertently strengthened the black market, increasing the risk of individuals migrating to it. This, in turn, has also decreased the funding available for good causes from legal gaming operations.

In his statement, Blok asserted that the Netherlands’ channelization rate has fallen below 50% in terms of gross gaming revenue, citing recent data from the Kansspelautoriteit (KSA). Therefore, Blok argued that regulatory efforts should concentrate on dismantling illegal operators rather than imposing excessive regulations on legal ones.

He advocated for a balanced approach to gambling taxation and urged lawmakers, at a minimum, to refrain from further tax increases. He emphasized that any hypothetical hikes would further jeopardize the equilibrium between responsible, regulated gaming and the provision of funds for good causes.

Blok stressed that individuals who are drawn to the black market are often those most in need of protection.

Meanwhile, the Netherlands is considering additional advertising restrictions, including a contentious proposal for a complete ban on all advertisements.