For professional poker players in the Netherlands, one of the ongoing challenges in reporting income from live tournaments is that while there are tax rules surrounding gambling prizes, the application of these rules isn't straightforward, and in some cases, there is ongoing contention.
This problem has been brought to the forefront with the increased number of Dutch players in international competitions and the significant tournament wins. The stark contrast between live tournament winnings and the income earned from online poker has been a source of contention in several administrative court cases. The Dutch tax advocacy poker community, as well as the tax experts, have been compelled to follow the evolution because of these cases.
Ongoing Uncertainty Around Dutch Gambling Tax Rules
Since January 2026, according to ICLG, there has been a 29.5 per cent gambling tax in the Netherlands for prizes over €449 from games of chance, including poker tournaments. This prize-winning tax is enforced by the Dutch Tax and Customs Administration. As such, it is normal for casino/club tournaments in the Netherlands to have tax deductions taken from the prize money.
This situation is not an issue for an occasional player, but for a player who participates in multiple tournaments and wins a significant amount of money, problems may arise. Problems may originate from the tax office determining that the player earned professional income instead of gambling prizes.
This is problematic for several reasons; there is no gambling tax applicable to prizes that have an income tax obligation, which means a player can claim expenses related to tournament buy-ins, travel, and hotels.
Under the Dutch income tax system, there is a tax bracket that can go up to 49.5 per cent for professional income, and for the 2025 tax year, published by the Dutch Ministry of Finance, professional income expressed in dollars has been calculated to be 49.5 per cent plus the cost of living in the Netherlands.
For the last ten years, government documents show that there has been an increase in litigation concerning the taxation of gambling. As part of a policy evaluation, the Dutch Ministry of Finance recorded that more than 1,200 tax gambling assessments were reassessed during the years 2018-2023, after an appeal was made by taxpayers regarding the categorization and/or calculation made by the tax authority.
Difference Between Live Tournament Winnings and Online Poker Income
In some court cases, the Netherlands has taken a position on the disparity between earnings from live tournaments and winnings from certain types of online poker. This was in response to players contesting gambling tax assessments on online poker operators based in the EU.
In a few administrative jurisdictions, it was concluded that Dutch tax authorities were barred from taxing gambling winnings from sites licensed in the EU because those sites are situated in the EU and are therefore part of the European Economic Area. As a result of these decisions, it was documented by some Dutch tax consultancy firms in 2023 that several players were granted tax refunds on winnings from online poker.
Live tournament winnings operate on a different process. The casinos or event organizers take the gambling tax themselves at the source, which means they pay the prize money after the tax deduction. Because of this system, the players are not able to offset expenses such as tournament buy-ins when the tax is being calculated.
The live poker earnings of Dutch players show how pertinent the matter is. According to the Hendon Mob Poker Database, Dutch players won over $45 million in live tournament cashes around the world in 2024. This data does not account for the results of players who participated in events that are recorded outside of Dutch borders, which adds further complexity to how the players have to report their earnings in their home country.
How Dutch Pros Are Currently Reporting Their Earnings
The Dutch professional poker players tend to exercise a level of conservatism when it comes to filing taxes each year. In preparation for a tax filing, a tax consultant may recommend a player to take notes on the tournament entries, buy-ins, travel, and prize money if there is a request for that information made by the governing authorities.
The authorities are known to take a case-by-case approach to the situation. A player who plays occasionally may find themselves being classified within the normal gambling tax classification, but someone who plays frequently, travels a lot and participates in many tournaments may find that poker is classified as a profession.
The classification of work by various players can be understood through business registration data. Between 2020 and 2024, self-employment registrations in gambling-related categories increased by about 18 per cent, according to the Dutch Chamber of Commerce. Some of these registrations are done by poker professionals, who are allowed to report their activity as business income.
This means players can expense entries to tournaments as business expenses. On the downside, income becomes subject to income tax brackets rather than the tax-free gambling prize tax at the flat rate. Due to the complexity of the obligations arising from the various scenarios, professionals are advised to rely on accountants or taxation lawyers with a focus on gambling tax.
