Holland Casino, a popular gambling establishment, has recently disclosed a significant loss of €3.5 million ($3.9 million) in the first half of 2024. This marks a stark contrast from the previous year, where the company reported a profit of €17.2 million ($19.2 million) during the same period. The casino attributes part of this financial setback to a 1% increase in gambling tax that came into effect at the beginning of the year, resulting in a total loss of €3.7 million ($4.1 million) for Holland Casino thus far.
CEO Petra de Ruiter expressed discontent with the tax hike, emphasizing that the company’s overall tax burden would reach nearly 50%, making it virtually impossible for them to operate in the black. She highlighted the challenges of passing on price increases to customers, unlike supermarkets, and outlined the undesirable options of resorting to aggressive marketing tactics, encouraging excessive spending, or reducing prize payouts. De Ruiter deemed these measures unacceptable and irresponsible in the context of government gambling regulations, noting that they would also jeopardize planned investments in prevention programs.
CFO Ruud Bergervoet identified additional factors contributing to Holland Casino’s financial woes, including high inflation, increased labor agreement costs, and ongoing expenses related to COVID-19 debts. Bergervoet underscored the importance of avoiding further significant cost escalations to safeguard the casino’s financial stability and prevent further losses.
The casino’s struggles underscore the challenges facing the gambling industry in the current economic climate, where external factors such as tax increases and inflation can significantly impact profitability. Despite these setbacks, Holland Casino remains committed to maintaining its operations and financial health, while navigating the complexities of the evolving regulatory landscape and economic conditions.