Online Gaming Significant Factor in 2022 Dutch Gambling Tax Revenue of $1B
Posted on: August 29, 2023, 06:47h.
Last updated on: August 29, 2023, 10:57h.
The Dutch have been allowed to gamble on licensed casino websites since the fall of 2021. Since then, the market has continued to find success, which is boosting the government at the same time. Last year, the Netherlands earned almost $1 billion from gambling taxes.
Kansspelautoriteit (KSA), the Dutch gaming regulator, reported that around one in 20 Dutch people gambled on a licensed online platform last year. This helped the government take in €900 million (US$973 million) in gambling taxes for 2022.
The figure is only expected to go up as the Dutch government approves additional licenses and more consumers turn to online gambling platforms. KSA data has shown that 60% of online gamblers never gambled until the iGaming segment arrived.
Gambling Continues Rise
In 2022, according to previous KSA data from April of this year, the Dutch iGaming industry had gross gaming revenue (GGR) of €1.08 billion (US$1.16 billion). The second-half forecast anticipated an annual GGR of approximately €1.22 billion (US$1.31 billion), making this deviation unexpected.
Revenue for the fourth quarter of last year experienced a notable surge, countering some of the earlier sluggishness. Q4 GGR for the iGaming segment was €327 million (US$353.38 million) compared to the preceding quarter’s €271 million (US$292.87 million).
As a result, 2022 finished on a high note. The entire gambling industry was up, and although the iGaming segment missed its initial projections, its success can’t be ignored. The Netherlands launched iGaming in October 2021, and only about a year into the market, the segment was making more than €1 billion.
In the same KSA report, the upward trend continued into January 2023, which saw year-on-year growth of 37.7%. iGaming GGR grew from €90 million (US$97.26 million) in January 2022 to €123 million (US$132 million) in January 2023. Overall, the regulator anticipates an average increase of approximately 13%-15% for 2023.
Land-Based Gaming Back in Business
In addition to the increase in legalized online gambling, the end of the COVID-19 pandemic also helped boost gambling taxes. As a result of a return to near-normal operations last year, Holland Casino was able to begin welcoming more gamblers to its venues.
While the tax revenue from gambling is impressive, it’s still just a small percentage of the total. Data from Statistics Netherlands shows that revenue from gambling taxes represented only a tiny fraction of total government revenues.
Last year, according to the agency, all taxes and social contributions accounted for almost €370 billion (US$399.86 billion). Government revenue increased by 9% to €415.5 billion (US$449 billion), mainly due to higher income from taxes on corporate profits and increased revenues from natural gas as a result of geopolitical developments.
Also contributing to the increase in the government’s surplus was reduced spending. The removal of COVID-19 restrictions, among other expenditures, allowed the Dutch government to reduce the country’s deficit by 0.1% of its gross domestic product. The final calculation for the deficit was €1.4 billion (US$1.51 billion), significantly lower than the €20.4 billion (US$22 billion) the government carried just a year earlier.
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