JVH Gaming & Entertainment, the parent company of popular online casino brands Jack’s Casino, Flash Casino, and Flamingo Casino, is scaling back its land-based presence
JVH Gaming & Entertainment has confirmed the move cited by NL Times. The company said that because of the anticipated tax increase, at least 30% of the company’s branches are not feasible options for the business moving forward.
Large Dutch Casino Operator Shutters Physical Locations En Masse
JVH Gaming & Entertainment is planning to shut down 23 of its venues, out of 87 locations in total. Apart from the tax increase, the cost of living has also contributed, with rising costs, interest rates, energy bills and increases in the minimum wage all proving deciding factors in pulling the trigger.
The worst impacted are Flash Casino’s locations, half of which are expected to be closed. Flamingo Casino’s physical operations will cease to exist completely.
“We are still speaking with the relevant employees, and we would like to conduct personal conversations first before we make any announcements regarding this. This is why we unfortunately cannot provide any numbers as of yet,” a translated statement by JVH Gaming & Entertainment spokesperson read.
The number of impacted jobs is not yet clear. This is not the only company that has been trimming its sails in recent months. The Janshen-Hahnraths Group said that it would cut 100 out of its 500 available positions, following two years of back-to-back losses.
In the meantime, Holland Casino Group confirmed in October that it will be shuttering its Zandvoort branch. Not all of these workforce reduction moves have been caused by regulatory headwinds necessarily.
Tax Increases and Unfavorable Marketing Conditions Lead to Closures
The legalization of Internet gambling has shifted the focus and offered players more opportunities to play remotely, leading to lower footfall on casino floors across the country.
The country is preparing to gradually roll out a 37.8% tax increase, which will attain the maximum levy in 2026, adding more difficulty to local operators.
The decision has been criticized by observers who have argued that by increasing the tax, the regulated gambling market will continue to struggle against black market operations which have not been curbed.
In the meantime, a new website has emerged in the Netherlands, trying to leverage public input in informing authorities about illegal gambling operators that can be investigated and acted against swiftly.
