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Government-owned Holland Casino lost €3.5m in the first half of the year and has warned that more losses are certain if a planned increase in gambling tax goes ahead, with a top executive raising the possibility of a government bailout.
A new Dutch Cabinet plans to increase gambling taxes from the current 30.5 percent to 37.8 percent in January 2025, a step which the government claims could raise €200m.
That 7.3 percent increase would be “irresponsible” and guarantee a significant loss for online and land-based gambling company Holland Casino, said chief executive Petra de Ruiter last week (August 22).
Chief financial officer Ruud Bergervoet would not rule out the company being forced to turn to the government for state aid if losses worsen.
"You have to think of a capital injection, shareholder loans, that kind of thing. I wonder how the State Secretary for Finance (Folkert Idsinga) will deal with that dilemma,” Bergervoet said in an interview with de Telegraaf.
Holland Casino turned a €17.2m profit in the first half of last year into a loss this year due to inflation, higher labour costs and increased spending on staff and gaming, said the CFO.
The company was also paying off debt incurred during COVID-related shutdowns, he said.
A 1 percentage point increase in tax imposed earlier this year cost the company €3.7m, Holland Casino said.
To cope with even higher taxes, the company would need to take “very undesirable measures such as aggressive campaigns to recruit new guests, encouraging people to spend much more or by significantly reducing the prize money”, de Ruiter said.
“Unlike supermarkets, we cannot pass on price increases properly,” she said.
Bergervoet warned that the entire gambling industry will struggle if the planned tax increase goes through.
"Both online and gaming halls: the entire sector will have a hard time,” he told de Telegraaf. “Companies will go under."
Holland Casino’s first-half revenue fell 2.4 percent to €395.4m as customer numbers rose slightly at the chain’s 14 casinos, but players spent less.
Online revenue also declined about 15 percent to €48.9m, the company said.
