Legalizing online gambling doubled Dutch State's gambling income to nearly €1 billion
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The legalization of online gambling was very profitable for the treasury last year. Partly thanks to this measure, the income from gambling taxes more than doubled to almost 1 billion euros, Statistics Netherlands (CBS) wrote in a new report on government finances.
Since the autumn of 2021, Netherlands residents have been allowed to gamble on licensed casino websites. According to figures from the Gambling Authority, the market exploded. Over one in 20 Netherlands residents gambled on a legal site last year.
In addition to the increase in legalized online gambling, the end of the coronavirus crisis also resulted in an increase in gambling taxes. Holland Casino establishments could receive guests unhindered. In total, the government earned 900 million euros from gambling taxes.
Government revenue from selling emission allowances also rose remarkably fast, according to CBS. Companies must pay for every ton of CO2 they emit with an emission allowance. Because the total number of available allowances keeps falling, the price for these has risen sharply.
CBS emphasized that although the revenues from gambling taxes and emission rights have risen sharply, they are only a small part of the government’s total revenue. All taxes and social security contributions together amounted to almost 370 billion euros in 2022.
The total government revenue rose by 9 percent to 415.5 billion euros. The increase was primarily due to higher income from corporate income taxes. In addition, the government earned more from natural gas, which became much more expensive on world markets due to Russia invading Ukraine.
At the same time, thanks to the coronavirus pandemic, the government spent less on support measures. As a result, the government deficit amounted to 1.4 billion euros, equivalent to 0.1 percent of gross domestic product. In 2021, the government spent 20.4 billion euros more than it received.
