The newly appointed Dutch Minister of Legal Protection, Arno Rutte, has announced that he will develop a new regulatory policy for land-based slot machines based on the latest research reports. Five recent studies indicate that cash payments remain the preferred method for players, but pose money laundering risks; identity verification systems received mixed reviews; and discussions on betting limits and game content expansion are also focal points. This reform, which considers raising the gambling tax rate to 37.8% starting January 2026, is expected to have a profound impact on the Dutch gambling industry.
New Minister and Reform Background
The new Dutch Minister of Legal Protection, Arno Rutte, recently wrote to the House of Representatives, announcing that he will use the recommendations from five new studies to formulate a new policy for land-based slot machines. Rutte recently replaced Tern Struiken, who resigned due to Israel's cessation of sanctions amid ongoing conflicts in Palestine.
The studies include a recent report from the Saudi Arabian National Bank on the impact of tax increases, proposing a series of proposed reforms for Dutch slot machine regulation. The research points out that many regulations related to physical slot machines have not been updated since 2000.
Payment Preferences and Risks
One of the main findings of the research report is that cash remains the preferred payment method for physical slot machine players, a trend particularly evident among older players, while younger players tend to prefer contactless and card payments.
The report also highlights the risks associated with cash gambling, mainly money laundering and robbery. However, health experts also argue that cashless payments could negatively affect users, as "seeing and feeling cash, especially during the exchange process, can make players more aware of their spending."
Controversy Over Identity Verification Systems
The report also considered the issue of player identity verification. Currently, only casinos and gaming halls are required to conduct comprehensive identity checks, while dining venues only check age, and researchers say industry stakeholders believe the current policy has loopholes.
Responses vary on how to address this issue. Harm prevention workers support the implementation of comprehensive player identity verification in all venues, while other respondents worry about implementation costs and note that this could push players towards illegal gambling channels.
Discussion on Betting Limit Adjustments
Another major area of focus for researchers is betting limits. The report states that the Netherlands' betting limits are already "strict," with each location's betting limits preset and not adjusted for inflation.
Researchers question whether this approach should be adjusted, especially since the betting limits have remained unchanged since the Netherlands first adopted the euro in 2022. Currently, users can only bet 0.20 euros, with a maximum loss of 40 euros per hour, and some call for these to be raised to 0.50 euros and 100 euros, respectively.
Expansion of Game Content and Operators' Views
Respondents were asked about their views on expanding the content available to slot machine players. Currently, each machine can only run a limited number of games, but there are calls to extend this limit.
However, casino and gaming hall operators have limited demand for more types of slot machines. Respondents indicate that high investment costs hinder them from adding more content, believing that "modernization is not urgent, as they can easily cope with existing technological regulations."
Political Environment and Policy Outlook
The Dutch political scene is facing a decisive moment, with early elections scheduled for October 29. Previously, the far-right Freedom Party leader Geert Wilders withdrew from the four-party coalition government in June, leading to the government's collapse.
The former Minister of Legal Protection, Struiken, had stated in February this year that a new gambling bill was expected by the end of the year, possibly including measures such as raising the age limit for online slot machines and other high-risk products. With his resignation, the progress of the new bill has become uncertain.
Tax Policy Changes
One change that is almost certain to occur is a further increase in the gambling tax. Starting January 1, 2026, the tax rate will rise to 37.8% of total gambling revenue, but may be adjusted subsequently.
Previously, the tax rate had been raised from 30.5% to 34.2% starting January 1, 2025. This adjustment will have a significant impact on the Dutch gambling industry, potentially altering the market landscape and operators' profitability.
Implementation Challenges and Industry Impact
The report notes that introducing personalized player cards in the hotel industry is considered difficult and expensive. From a prevention of addiction perspective, cashless gaming only brings benefits when player cards are personalized, as personalization can monitor players' gaming behavior and allow for setting personal gaming limits, among other options.
Researchers warn that "based on the results of choice experiments, it is clear that introducing player accounts on physical slot machines may create barriers to player entry," requiring a balance between regulation and user experience.
