The CEO of the Dutch Lottery (Nederlandse Loterij) said the decision to increase gambling taxes in the country risks accelerating black market activity and reducing funding for good causes.
In its 2025 annual report, the state-backed operator revealed that higher taxes and tighter regulation had already pushed it to a net loss in 2025.
The lottery said the dual increase in gambling tax over the past 18 months is putting the “earning capacity of the legal market” under significant pressure. It also flagged the risk of players turning to unregulated operators, with licensed websites unable to offer comparatively attractive products and promotions to players.
Gambling tax in the Netherlands initially increased from 30.5% to 34.2% in January 2025. However, a further rise came into effect in January this year, with operators now faced with a 37.8% rate.
According to the Dutch Lottery, the higher tax burden is having wider implications on the market. It said that as a result of having to pay more tax, the amount of money available for sport and charitable causes has been reduced.
On this, Dutch Lottery CEO Arjan Blok (pictured) said the government should reject any proposals for further tax increases. He said the lottery was already feeling the impact of higher tax and any additional rise would harm the business and the wider, regulated market.
“Further increases endanger the balance between responsible gaming offerings and social returns,” he said. “It is precisely the players who need our protection the most who are turning to illegal offerings.
“More importantly, the higher tax makes the legal offer less attractive in the long-term, because there is less room to offer players attractive prizes and gaming options. This increases the risk that players will turn to providers without supervision or protection.”
Dutch Lottery claims channelisation is below 50%
The lottery also used its report to warn that the regulated market is losing ground to illegal operators. It claimed the country’s channelisation rate has now fallen below 50% when measured by gross gaming revenue.
According to the lottery, the Netherlands Gambling Authority adopted a revised methodology developed by the operator in 2025. This, it said, revealed the illegal market was “much larger than previously thought”.
The Dutch Lottery described the findings as a “political gamechanger”, adding that stronger enforcement against unlicensed operators should now become a central focus of Dutch gambling policy.
With this, Blok said the operator’s ability to continue supporting Dutch society depended on a “stable and predictable policy framework”.
“A fair and future-proof gambling tax is essential to keep legal gaming sufficiently attractive, to protect as many players as possible against gambling addiction and to safeguard our social contribution,” Blok said.
“Effective player protection starts with a strong and fair regulated system. That can only exist when the legal market retains enough room to keep players safely within supervision, while illegal operators are structurally pushed back.”
Mixed news for Dutch Lottery in FY25
Amid pressure from higher tax and tighter regulation, the lottery generated €688.9m in net revenue during 2025, down from €724.4m the previous year.
After tax and mandatory beneficiary contributions, the operator posted a net loss of €7.7m, compared to a €30.9m profit in the previous year. It specifically said this was due to a rise in gambling tax, stricter online gambling limits and additional restrictions such as the sports sponsorship ban.
The operator added that total stakes across the business declined from €6.1bn to €5.1bn during the year, while prize payouts dropped from €5.4bn to €4.5bn.
However, despite wider challenges, several brands still posted strong performances. It highlighted record sales for its King’s Day, Dream Salary and New Year’s Eve lottery draws, while TOTO Casino claimed market leadership in the Dutch online gambling market during October 2025.
