Dutch land-based gaming operator JVH gaming has confirmed plans to close up to a third of its casino venues as a result of the upcoming increases in gambling tax in the Netherlands.
JVH will shutter 23 of its 87 gaming venues across the country, which operate under the Flash Casino, Jack’s Casino and Flamingo Casino brands.
The company said the move is a direct result of the Dutch government’s plan to increase the gambling tax in two phases early next year to 37.8 per cent of gross gaming revenue, up from the current 30.5 per cent tax rate.
“The gaming tax comes on top of the ongoing cost pressures of recent years,” explained JVH gaming chief executive Eric Olders. “Like many retail and hospitality businesses, we have been experiencing strong upward cost pressure for an extended period due to rising rents, energy costs, the sharply increased legal minimum wage, the overall impact of higher inflation, higher interest rates and increased costs due to a sharply increased regulatory burden.
“This is no longer sustainable for many gaming locations in the Netherlands, including a significant number of our establishments.”
Olders added that licensed gaming providers will not be able to cope with the hit, which will mean that illegal gambling proliferates.
“The €200 million extra gaming tax revenue budgeted by the government will largely turn out to be a paper tiger,” he explained. “I therefore expect that we will not be the last company in our sector to have to make tough choices. More will follow that will have to reorganise or close doors.”
Of JVH’s total 87 venues, more than 40 operate under the Flash Casino brand, which will be the hardest hit by the restructure with almost half of the branches closing down.
In addition, the Flamingo Casino brand, which was acquired by JVH in 2018, will permanently disappear from the market.
“It is an inevitable and hard blow,” said Olders. “These are respected brands that our employees and guests have known for a number of decades. They are seen as leading and trusted names in the Dutch gaming world.”
Due to the reduction in the number of its venues, JVH will also be forced to reduce staff at its central office in Den Bosch, although its Jacks.nl iGaming arm remains unaffected by the changes.