The Netherlands gambling tax hike could hurt Holland Casino

The Dutch land-based monopoly’s CFO Ruud Bergervoet warns the corporate’s is “vulnerable” after a no longer easy H1, because it continues to battle with high inflation and rising prices.

In Could perhaps perchance, a coalition settlement between four political parties proposed elevating the gambling tax fee from 30.5 % to 37.8% in 2025. This might increasingly likely perchance well also elevate €202.0m (£171.5m/$225.0m) in extra tax revenue annually.

The proposal comes after gambling tax already increased by 1% for 2024. This, Holland Casino acknowledged lately (22 August), has already had a major affect on its performance in H1, contributing to a safe loss of €3.5m for the six months to 30 June.

“We can no longer correctly pass on mark will increase”

Chief govt Petra de Ruiter warns any extra tax will increase would assemble it no longer doable for Holland Casino to operate profitably. She went as a ways as to negate the mooted 7.3% rise would be “irresponsible”.

“Our entire tax burden will then be nearly 50%,” she acknowledged. “This draw dim numbers are no longer that it is seemingly you’ll perchance well assume. We can then assemble a major loss. Unlike supermarkets, we’ll not correctly pass on mark will increase.”

Holland Casino would be forced into “undesirable” measures to assemble money

CEO de Ruiter went on to negate if the tax enlarge had been to head forward, Holland Casino would want to place terminate “undesirable” measures to fling as a winning trade.

It might well be forced to aggressively recruit new clients, support of us to dispute extra, or reduce prize money for gamers.

“These measures are unacceptable for Holland Casino and irresponsible from authorities coverage on gambling,” she acknowledged. “Furthermore, the deliberate investments in our prevention coverage are furthermore coming wired.”

Tax burden affect certain to glimpse in H1

Turnover for the six months to 30 June used to be 2.4% lower at €395.4m. Some verticals performed strongly, with retail slot and catering revenue a little bit increased year-on-year.

Then as soon as more, entire department turnover used to be 0.5% lower year-on-year across its 14 properties, no subject a marginal enlarge in entire visits. Besides to, Holland Casino On-line turnover used to be down 14.7% to €Forty eight.9m.

The 1% tax enlarge added €3.7m in extra prices to Holland Casino’s steadiness sheet. Personnel payments had been furthermore up 11% but the operator used to be in a region to assemble the €5.4m in entire operational mark financial savings.

Commenting on the outcomes, CFO Ruud Bergervoet acknowledged that the monetary region of Holland Casino is “vulnerable”. He added that any extra rise in prices would space the operator in a “losing subject”.

“Holland Casino’s funds are below heavy pressure due to the increased prices,” he acknowledged. “This primarily issues high inflation, the enlarge in the collective labour settlement and investments in our game offering and staffing.

“As a company, we are furthermore serene working on repaying corona debts. This makes our monetary region vulnerable. It is a ways important for our monetary well being that there don’t appear to be any extra fundamental mark will increase now. Easiest then develop we steer certain of ending up in a losing subject.”