Holland Casino suffered a loss of €3.5m in the first half of 2024, having made a profit of €17.2m last year with sharply rising costs having a significant impact. Total revenue decreased by 2.4 per cent to €395.4m.
The operator has warned that a further proposed gambling tax increase of 7.3 per cent is irresponsible, taking its tax burden to almost 50 per cent, making it impossible for the operator to turn a profit.
The one per cent increase in gambling tax since this year also resulted in an additional cost of €3.7m. Holland Casino was already taking into account a sharp reduction in profitability due to the updating of its range of games and staffing. High inflation and a step-by-step increase in the collective labor agreement also brought considerable additional costs. Personnel costs increased from €136.5m to €151.5m, an increase of almost 11 per cent.
Gaming machines faired slightly better than last year, coming in at €3.9m with revenues from hospitality activities also increasing slightly to reach €0.7m. In the first half of the year, Holland Casino managed to reduce its operating expenses by €5.4m compared to last year. At Holland Casino Online, revenue fell from €57.3m in the first half of 2023 to €48.9m in HY1 of 2024.
CFO Ruud Bergervoet said: “Holland Casino’s finances are under considerable pressure due to increased costs. This mainly concerns high inflation, the increase in the collective labor agreement and investments in our range of games and staffing. As a company, we are also still in the process of paying off the corona debts. This means that our financial position is vulnerable. It is crucial for our financial health that there are no further substantial cost increases now. Only then can we avoid ending up in a loss-making situation.”
CEO Petra de Ruiter highlighted that the intended increase of the gambling tax increase of 7.3 per cent is irresponsible. “Our total tax burden will then be almost 50 per cent. This means that black figures are not possible. We are going to make a big loss. Unlike supermarkets, we are not able to pass on price increases properly. The only alternative is that we take very undesirable measures such as aggressive campaigns to attract new guests, encouraging people to spend much more or by significantly reducing the prize money. These measures are unacceptable to Holland Casino and irresponsible from the point of view of government policy on gambling. In addition, the planned investments in our prevention policy will also come under pressure. It is crucial for our financial health that there are no further substantial cost increases now. Only then can we avoid ending up in a loss-making situation.
In the first half of 2024, the prevention figures will develop in line with expectations. It is striking that the number of signals from our employees about possible immoderate participation in the game increased.
CCO Malinda Miener commented: “I am pleased that our staff are becoming more and more vigilant in paying attention to signs of possible immoderate participation in the game. You can see that the intensive training policy and the intensification of communication about this have further strengthened awareness. I’m really proud of that.”
