Dutch authority seeks temporary gambling tax hike

Dutch players have been long demanding for online gaming services with companies operating in a gray area due to the lack of regulations.

2017-09-22

Netherlands

Reading time 1:28 min

The government of the Netherlands is seeking to implement a temporary rise in the country's current gambling tax rate. Under the proposal, the current tax rate will be increased by 1.1% to 30.1%. At the moment, gambling operators pay 29%.

Lawmakers explained that the six-month window will allow the Dutch Gaming Authority (Kansspelautoriteit) to make the necessary adjustments arising from the introduction of the new gambling law. They pointed out that the gambling bill will finally be implemented on July 1, 2018, meaning that the old gaming tax rate will be re-introduced on January 1, 2019.

The plans, which were published in the 2018 budget plan on Tuesday, would see the tax on operators’ gross gaming revenue rise from 29 percent to 30.1 percent in 2018 and fall back to 29 percent six months after the new online gambling law finally passes through parliament.

The discussed legislative piece will open the Dutch online gambling market to international operators. Demand for iGaming services has always been high among Dutch players and due to the lack of proper regulations, companies have been able to operate in a gray area.

Earlier this year, the Kansspelautoriteit introduced new rules to the way iGaming services are provided in the country’s unregulated environment. The regulatory body thus made it much harder for operators and their affiliate partners to target Dutch players.

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Kansspelautoriteit’s tighter rules were justified by the regulator as ones that aimed to present more clarity and emphasis on its negative stance on the provision of unlicensed services to Dutch customers

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They also signaled that changes in the country’s gambling environment could eventually be adopted.

Last summer, the Dutch House passed the above-discussed iGaming bill and send it to the Senate for consideration. Hopes were for quick implementation of the legislative piece, but those hopes were not fulfilled.

Kansspelautoriteit’s new set of rules was highly contested by industry stakeholders with Malta-based online gambling operator Betsson being among the most vocal opponents. The gambling group sought court ruling on the matter, but a Hague court ruled in favor of the Dutch gambling regulator earlier this month. The court decided against Betsson’s claim that Kansspelautoriteit’s new rules violated EU regulations and limited interested operators in freely distribute their services within the union’s borders.