Plans to increase the gambling tax in the Netherlands have been met with criticism from industry.

Netherlands Online Gambling Association director Peter-Paul de Goeij said proposals for a 7.3 per cent increase in the rate to 37.8 per cent “endangers the viability” of the regulated Dutch market and “will lead to an even further decline in the legal gambling supply.”

He added that the proposed €202m boost to government funding “will be in stark contrast to the significant social damage that will occur because Dutch consumers will increasingly resort to illegal providers.”

Fellow trade association VAN Kansspelen said the increased tax would lead “lead directly to the disappearance” of the regulated land-based industry, which it noted is already under pressure after tax rises in recent years.

The agreement between the four main political parties in the Netherlands was made late on Wednesday.

The wide-ranging budgetary document, whose topics also include asylum and fishing, is titled Hope, Courage and Pride and was reportedly handed over to House Speaker Bosma shortly after 2am and was due to be presented on Thursday.