Holland Casino has had a difficult first half of 2024, ending with a loss of €3,5 million. It proved difficult to pass on the cost increases to guests. The 1% increase in the gambling tax alone resulted in an additional cost of 3,7 million. And then there are plans on the table to increase the gambling tax even further by 7,3%.
Within the recreation sector, gambling providers have a special revenue model. The average visitor goes home with a loss and a minority celebrates a party because of the profit achieved. Gambling is exciting and above all provides a lot of entertainment. Catering and entrance are also parts of the revenue model. At the end of the evening, the tax authorities are always the big winner because they can levy gambling tax on the 'winners'.
Last year, Holland Casino made a profit of €17,2 million in the same period. Sharply rising costs have a significant impact. But the 1% increase in the gambling tax since this year also resulted in an additional cost item of €3,7 million.
Holland Casino already took into account a sharply reduced profitability. Particularly because of updating our game offering and staffing levels. The high inflation and gradual increase in the collective labor agreement also entail significant additional costs. Personnel costs increased from €136,5 million to €151,5 million, an increase of almost 11 percent.
Turnover in our branches was 0,5 percent lower than last year. Some components developed slightly positively. For example, the slot machines in the branches generated slightly more revenue compared to last year (€3,9 million) and revenues from catering activities also increased slightly (€0,7 million). In the first half of the year, Holland Casino managed to reduce its operating costs by €5,4 million compared to last year. At Holland Casino Online, turnover fell from €57,3 million in the first half of 2023 to €48,9 million in HY1 of 2024.
CFO Ruud Bergervoet: “Holland Casino’s finances are under significant pressure due to rising costs. This primarily concerns high inflation, the increase in the collective labor agreement, and investments in our gaming offerings and staffing. As a company, we are also still in the process of repaying COVID-19 debts. This makes our financial position vulnerable. It is crucial for our financial health that no further substantial cost increases are added now. Only then can we prevent ending up in a loss-making situation.”
In this context, CEO Petra de Ruiter points out that the proposed 7,3% increase in gambling tax is irresponsible: “Our total tax burden would then reach nearly 50%. Turning a profit is not possible under those circumstances. We would then incur substantial losses. Unlike supermarkets, we cannot effectively pass on price increases. The only alternative would be to take highly undesirable measures, such as aggressive campaigns to attract new guests, encouraging people to spend much more, or drastically reducing prize money. These measures are unacceptable to Holland Casino and irresponsible given government policy regarding gambling. Moreover, the planned investments in our prevention policy would also come under pressure as a result.”
Source and more information: https://nieuws.hollandcasino.nl/