The decision to pull out of his Dutch commitments came hot on the heels of Kyrgios' controversial "tanking" performance at the Shanghai Masters.
Rotterdam tournament director Richard Krajicek was sympathetic to Kyrgios, when explaining his decision to allow the Australian to renege on his contract.
"You see what can happen when he is tired and [tennis] has little meaning, as in China," he said. "We do not want that, so we decided to terminate his contract.
"We want a top tennis player seen on the court. Kyrgios prefers his passion beyond his profession.
"If every week he is focused on tennis, he might be mentally burned out after six months. He needs an outlet."
NBA All-Star Celebrity Game teams
Team Smith (West)
Miles Brown (actor), Tom Cavanagh (actor), Mark Cuban (Mavs owner), Baron Davis (former NBA), Andy Grammer (recording artist), Jiang Jinfu (actor, model), Anthony Mackie (actor), Romeo Miller (rapper), Hasan Minhaj (actor, comedian), Master P (rapper), Candace Parker (WNBA), Aaron Sanchez (celebrity chef)
Team Hill (East)
Brandon Armstrong (former NBA), Win Butler (Arcade Fire), Nick Cannon (rapper, actor), Rachel DeMita (TV personality), Ansel Elgort (actor, recording artist), Marc Lasry (Bucks owner), Caleb McLaughlin (actor), Peter Rosenberg (media personality), Oscar Schmidt (Olympic basketball legend), Lindsay Whalen (WNBA), Jason Williams (former NBA), Kris Wu (recording artist)