Netherlands: JVH Gaming to close 25 gambling arcades due to rising costs, tax increases  

JVH Gaming, the operator behind Jack’s Casino and other fruit machine arcades, has announced plans to shut down 25 locations and reduce its headquarters staff as the company contends with escalating costs and increasing gambling taxes.

The closures, primarily targeting arcades under the Flash Casino brand, will also mark the complete discontinuation of the Flamingo Casino name.  

The announcement follows recent tax policy changes in the Netherlands. This year, the gambling tax rose by one percentage point, with further increases set to take effect in the coming years. The rate is scheduled to rise from 30.5% to 34.2% in 2025 and will climb to 37.8% by 2026. These measures aim to generate an additional €200 million annually for the treasury.  

Erik Olders, CEO of JVH Gaming, described the government’s tax hikes as a “bitter pill,” noting the difficult decisions the company has had to make to adapt. This move was necessary to "deal with the pain,” Olders said.

He also pointed to rising operational costs, including rent, wages, and energy expenses, as well as lingering challenges from the COVID-19 pandemic as additional factors impacting the business.  

JVH Gaming operates 87 arcades across the Netherlands under the Jack’s Casino, Flash Casino, and Flamingo Casino brands. Last year, the company recorded sales of €184 million ($193.68 million) after accounting for gambling taxes.  

The planned closures are part of a broader trend in the Dutch gambling industry, where operators are facing mounting financial pressures. Earlier this year, the Janshen-Hahnraths Group, which manages the Fair Play Casino chain, announced it would eliminate 100 of its 500 jobs after two consecutive years of losses.

In October, Holland Casino Group, the state-owned gaming operator, revealed plans to close its historic Zandvoort branch, the oldest casino in the Netherlands, by next year.