‘Sharply rising costs’ had a significant impact on Holland Casino, after it was revealed that the operator suffered a loss of €3.5 million in the first half of 2024.
It’s a dramatic change from last year, when the company made a profit of €17.2 million in the same period. The company also blamed the 1% increase in gambling tax since the start of the year, which according to the group cost them a total of €3.7m.
CFO Ruud Bergervoet, commented: “Holland Casino’s finances are under severe pressure due to increased costs. This mainly concerns high inflation, the increase in the collective labor agreement and investments in our gaming offer and staffing.
“As a company, we are also still working on paying off the corona debts. This makes our financial position vulnerable. It is crucial for our financial health that no further significant cost increases occur now. Only then can we prevent ourselves from ending up in a loss-making situation.”
High inflation was also cited by the group as a reason for the increasingly challenging times, as it revealed it has already taken into account a sharply reduced profitability.
CEO Petra de Ruiter criticised the increase in tax as he said: “Our total tax burden will then be almost 50%. This means that black figures are not possible. We will then make a significant loss. Unlike supermarkets, we cannot pass on price increases properly.
“The only alternative is then that we take very undesirable measures such as aggressive campaigns to recruit new guests, encouraging people to spend much more or by significantly reducing the prize money. These measures are unacceptable for Holland Casino and irresponsible from the perspective of government policy on gambling. Moreover, the planned investments in our prevention policy will also come under pressure.”
