Double Up: Holland Casino Group Adding Extra Zero To Roulette WheelsGamblers At State-Owned Casinos Seeing Double At The Wheel |
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Gamblers at Holland Casino, home of the Master Classics of Poker, will be seeing double next year, as the state-owned operator adds an extra zero to its roulette tables.
The Holland Casino group is struggling financially in the face of worsening market conditions, caused by reduced footfall, increased costs, the legacy of COVID, and a sharp hike in government gambling tax.
The switch to American-style double zero roulette is one of many different tactics the group is employing, in a bid to pump up the profits at its 14 nationwide casinos.
Taxed Out
The controversial two-step tax hike was announced last September, in the debut budget from the new right-wing coalition government.
Gambling income tax is currently set at 30.5% of gross gaming revenue (GGR). In 2025, it will increase to 34.2%. By 2026, it will increase to 37.8%. The two-tiered approach is designed to give businesses time to ‘adjust’ and stabilize their accounts.
The tax increase means Holland Casino will have to find an extra €100 million, simply to avoid making a loss.
To do this, the group is delivering a cost-cutting package of limited operating hours and staff redundancies, combined with an overall reduction in return to player value (RTP) across its casinos.
In brief, it’s making it harder for players to win.
Chips Cashed In
One early casualty of the cutbacks is the iconic Holland Casino Zandvoort, which is closing its doors for good in 2025. It was the first casino in the group when it opened in 1976.
Holland Casino CEO Petra de Ruiter said, “The closure is essential to continue building a sustainable future for the company, in which we can continue to contribute to a safe and responsible gaming climate.
“At the same time, the closure means an emotional farewell to the first branch that Holland Casino opened in 1976. However, we expect to be able to relocate most of our employees to other branches and we hope to welcome our guests to one of our other locations.”
Ruiter is less impressed with the proposed 37.8% tax increase in 2026.
“The tax hike is irresponsible," she said. "A 37.8% rate increases the operator’s effective tax rate to around 50% of revenue. We will then make a significant loss. Unlike supermarkets, we cannot properly pass on price increases. Only cutting prize money for players, and being more aggressive in customer acquisition, would help balance the books. These measures are unacceptable for Holland Casino and irresponsible with regards to government policy on gambling.”
Zero The Hero
Will that extra zero save the Dutch bacon at Casino Holland?
Adding an extra zero to the table is one of many techniques a casino can use to bump up its margins. Every casino game comes with a predefined house edge. In the case of single zero roulette, the most common roulette at online casinos, house edge is 2.7%. This means for every $100 wagered, the house will, on average, win $2.70. Simple.
The roulette zero is a great way to explain what a casino house edge is.
Without the zero, a roulette table would make no money. Outside bets like red/black and odd/even, that both pay even money, would just roll the chips backwards and forwards between the players and the casino.
However, when the zero hits, all the outside bets lose. (Except in some jurisdictions like Atlantic City, where a player would get half of their bet back.)
Holland Casino is adding an extra zero. The house edge on Dutch roulette is now 5.26%. With the extra green slot on the reel, the casino has one more chance to win.
Roulette Riches
In the first half of 2024, Holland Casino reported an operating loss of €3.4 million, compared to a profit of €17.2 million for the same period in 2023. In 2022, the full year gross revenue was €735.8 million.
If every player was spinning exclusively roulette in 2022, here is how the profits would compare between single zero roulette and double zero roulette.
Single zero roulette – €800 million x 2.7% = €21,600,000
Double zero roulette – €800 million x 5.26% = €42,080,000
It’s fairly obvious but the extra zero effectively doubles the profit at the roulette table. If you are dealing with big bettors, it can certainly make a difference.
Other Options
So, where else could Holland Casinos improve its house edge without cutting costs or staff?
The players won’t like it, but here is what could happen:
Double Trouble
The Holland Casino group is navigating troubled waters. As a state-owned business, all the profits ultimately return to the government and back to the people.
If the lawmakers tax the casinos out of business, are they shooting themselves in the foot?
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