Gambling group JVH Gaming, which runs the Jack’s Casino fruit machine arcades, says it plans to close 25 outlets and reduce staff numbers at its headquarters, because of the increased tax on gambling, the Financieele Dagblad said on Wednesday.

The tax on gambling rose one percentage point this year and is due to go up again from 30.5% to 34.2% in 2025 and to 37.8% in 2026. The aim is to raise €200 million a year for the treasury.

Chief executive Erik Olders said the cabinet’s decision is a “bitter pill” and that the move was necessary to “deal with the pain”. Other costs, including rent, energy and wages are also having an impact on the company, as well as the knock-on effect of the coronavirus crisis.

JVH Gaming runs 87 gambling arcades under the brand names Jack’s Casino, Flash Casino and Flamingo Casino and booked sales of €184 million last year, after deducting gambling taxes.

Most of the arcades to close operate under the Flash brand and the Flamingo name will disappear completely.

Earlier this year, the Janshen-Hahnraths Group, which operates the Fair Play Casino gambling arcades said it was cutting 100 out of 500 jobs, after two years of posting a loss, the FD said.

In October, the state-owned Holland Casino Group said its Zandvoort branch, the oldest in the country, will close next year.