The government of the Netherlands has declared that the national lottery, Nederlandse Loterij, will not undergo privatization and will continue to be under state control.
The idea of privatizing the monopoly was initially brought up during a parliamentary committee discussion in November of last year.
Initially, the government was exploring the option of transferring control of Nederlandse Loterij to a private entity. However, in an announcement made on Tuesday, it was stated that the privatization of Nederlandse Loterij is currently not considered “feasible and proportionate”, and the current setup will be maintained.
Further elaborating, the government mentioned that such a change would contradict its vision on gambling. This vision includes keeping the Dutch lottery market as is and focusing on advancing the country’s online market instead.
The government highlighted that privatization would demand significant alterations in legislation and regulation, potentially exposing players to gambling-related risks. They emphasized that this is not “desirable” as they aim to protect consumers.
Potential Future Privatization of Nederlandse Loterij
State Secretary Tjebbe Van Oostenbruggen (taxation, tax authorities, and customs) and State Secretary for Legal Protection Teun Struycken disclosed this decision in a statement to the Dutch House of Representatives.
In a letter presented to parliament, State Secretary Van Oostenbruggen mentioned that the government might revisit privatization in the future. However, he stressed that the present moment is not suitable for such a substantial change.
Van Oostenbruggen emphasized that any future decision regarding the state lottery must align with “the vision of the department responsible for policy”.
“The government will keep Nederlandse Loterij as a state-owned company for now,” he stated. “Citizens will continue to have access to a provider that operates differently from commercial gambling organizations.
“By doing so, the government aims to take responsibility in a market that has evident negative aspects and ensure long-term stability.”
He referenced Struycken’s presentation to parliament in February about reforming current online gambling regulations and enhancing player protection.
His suggestions at the time included raising the minimum age for “higher-risk” verticals such as online slots to 21, along with stricter advertising limitations for operators. An updated gambling act bill is anticipated by the end of this year.
“This more stringent approach necessitates additional measures and stricter legislation and regulations for both legal and illegal gambling offerings,” Van Oostenbruggen stated in his letter.
CEO’s Stance on Independence of Nederlandse Loterij
The CEO of Nederlandse Loterij, Arjan Blok, responded with a mixed reaction to the announcement. While understanding the government’s choice, he expressed the lottery’s desire for independence from the state to better compete in the regulated market.
“Nederlandse Loterij aspires to be the most responsible gambling provider,” he emphasized. “We can achieve and sustain this if we can compete structurally with international rivals in the Dutch market. It is precisely to maintain this position that Nederlandse Loterij favors independence.”
Blok also welcomed the government’s intention to reassess its ownership in Nederlandse Loterij in the future, potentially leading to the lottery’s privatization at a later stage.
“It is encouraging to see the government acknowledge the significant pioneering role of Nederlandse Loterij and support our company’s strategy,” Blok remarked. “Moreover, it is reassuring that the government will review the ownership stake in Nederlandse Loterij in the long run.
“With a secure and responsible range of games of chance, Nederlandse Loterij will continue to fulfill its societal obligations. Participation should be enjoyable, but it must also remain responsible.”
Holland Casino Will Remain State-Owned
In another context, the state secretary’s letter addressed the effects of recent gambling tax increases on the state-owned land-based operator, Holland Casino. It was confirmed that Holland Casino will also not be privatized, but discussions are ongoing to alleviate the impact of heightened taxes.
Last August, Holland Casino’s CEO Petra de Ruiter cautioned that further tax hikes would jeopardize the casino’s profitability, labeling the 7.3% increase as “irresponsible”.
The first phase of the gambling tax hike came into effect in January, with the second phase expected in January 2026.
“Holland Casino’s current focus must be on ensuring the organization’s continuity. During the committee debate on state participations on November 28, 2024, I indicated ongoing talks with Holland Casino concerning the gambling tax increase’s ramifications. This increase is straining the company’s continuity. The discussions center on measures to facilitate recovery and address challenges,” Van Oostenbruggen explained in his letter.
The operator has initiated various measures to shield itself from the tax impact, including restructuring the headquarters, reducing marketing expenses, adapting opening hours and gaming offerings, closing a branch in Zandvoort, and implementing other cost-saving measures.
An agreement has been reached with the tax authorities for a payment deferment of the tax debt accumulated by Holland Casino during the Covid-19 pandemic. Additionally, a longer repayment term has been established for this tax debt to enhance the liquidity position.
“Holland Casino will need to devise new measures in the near future to ensure long-term viability,” Van Oostenbruggen concluded.
