JVH Gaming to Close 25 Gambling Arcades Amid Rising Costs and Taxes
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Loading... - Eirene Hondros
- 06 Dec 2024
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JVH Gaming, a prominent operator in the Netherlands' gambling sector, has announced plans to shut down 25 gambling arcades and reduce its headquarters staff in response to increasing operational costs and rising gambling taxes. The closures will primarily affect locations under the Flash Casino brand and will signal the complete discontinuation of the Flamingo Casino name.
The Dutch government has implemented a series of tax hikes, with the gambling tax increasing from 30.5% to 34.2% in 2025, and further to 37.8% by 2026. These changes are intended to raise an additional €200 million annually for the national treasury. Erik Olders, CEO of JVH Gaming, referred to these tax increases as a “bitter pill” and acknowledged the tough choices the company has had to make to cope with the financial strain.
In addition to the tax increases, JVH Gaming is facing rising costs related to rent, wages, and energy, compounded by ongoing challenges from the COVID-19 pandemic. The company operates a total of 87 arcades across the Netherlands and reported sales of €184 million ($193.68 million) last year after taxes.
The closures at JVH Gaming reflect a broader trend in the Dutch gambling sector, where operators are grappling with financial difficulties. Earlier this year, the Janshen-Hahnraths Group announced it would cut 100 jobs from its Fair Play Casino chain after experiencing two years of losses. Additionally, Holland Casino Group has plans to close its historic Zandvoort branch, the oldest casino in the country, by next year.
