Dutch Gambling Industry Voices Disapproval of 37.8% Gambling Tax Proposal

Several Dutch political parties have agreed upon the introduction of a 7.3% increase to the gambling tax that casino players are mandated to pay after winning substantial sums. CasinoNieuws.nl, a Dutch news agency, reported that if this proposal comes into effect, the gambling tax will jump from the present rate of 30.5% to a near 38%. It should be noted that the proposal follows another increase implemented earlier this year, prior to which the tax rate stood at 29.5%.

The end goal of the PVV, VVD, NSC, and BBB parties, who are behind the agreement, is to ensure an annual tax revenue of over €200 million on top of what is already paid to the treasury each year.

However, the decision was met with criticism from Peter-Paul de Goeij, Director of the Dutch Online Gambling Association (NOGA), who said that politicians will make it even more difficult for licensed gambling businesses to prevent local players from turning to illegal offshore operators.

“Recent reports by the Gaming Authority already show that channelization is under pressure,” he stressed, and he further added that the move carries substantial risk given how black market operators are not obligated to pay taxes and are already appealing to many Netherlands-based clients. He ended his statement by putting an emphasis on problem gambling and how the tax increase would avert “the financial and emotional burdens to the Dutch taxpayer.”

Regulated Dutch Gambling Could be In Danger

Sentiments similar to those of Mr. Goeij were expressed by the organization VAN Kansspelen, which warned that the new regulation would make it easier for black market operators to target an even larger portion of gamblers who reside in the Netherlands. On top of exacerbating gambling harm and gambling-related crime, the tax increase would also result in a loss of tax revenue in the long run, according to VAN Kansspelen. The fact that Dutch-facing gambling businesses have been struggling financially was also highlighted, and an emphasis was put on how the coalition agreement would “lead directly to the disappearance” of regulated gambling services in the Netherlands. VAN Kansspelen’s Chair, Henry Meijdam, deemed the proposal “completely socially irresponsible.”

Should the change come into effect, it would serve as the latest blow to the Netherlands’ gambling industry. Last year, the Dutch government officially banned the untargeted advertising of gambling, leaving casino operators with few avenues to promote their services to Dutch clients. The remaining channels of advertising would not last long, however, as targeted gambling ads were also outlawed this spring.

The ban on targeted ads was accompanied by a proposed amendment to Dutch law that could see slots prohibited in the country, and this has also been a cause for concern among industry players. In an interview with Next.io this April, Nils Anden, who currently serves as the CEO of the Kindred Group, cautioned against such a course of action. He told Next.io that as has been the case in non-Dutch markets, a ban on slots would simply force Dutch lovers of slot games to seek the services of illegitimate iGaming websites.