As reported by CasinoNieuws.nl, the Netherlands is set to alter its gambling tax rate from 30.5% to 37.8%, should the latest coalition agreement be implemented.
This change is expected to provide the state treasury with an additional €202 million (£173.3m/$219.6m) annually in gambling tax contributions. The agreement involves the PVV, VVD, NSC, and BBB parties.
In November, seven political parties announced their goal to generate an additional €200 million to €400 million in state contributions through an increased gambling tax. The coalition agreement, titled “Hope, Courage and Pride,” is scheduled to be presented today (16 May).
Tax Increase Amid Online Slot Ban Controversy
The proposal to raise the gambling tax comes on the heels of the Netherlands’ house of representatives voting to ban online gambling advertising and “high-risk” gambling, which includes online slots. The house voted to ban all targeted advertising, having already prohibited untargeted advertising. This new ban, effective from July 2023, encompasses mass advertising through television, radio, and sports sponsorships.
Additionally, the house voted for a ban on online slots due to concerns over the lack of player control in such games. These motions were put forward by Socialist party MP Michiel van Nispen. Although the bans have passed a house vote, the Netherlands’ minister for legal protection, Franc Weerwind, will review the law and decide whether to approve the changes.
Industry Opposition to Proposed Bans
The proposed changes have faced significant opposition from the industry. The Netherlands Online Gambling Association (NOGA) argues that these bans would push players towards the black market. NOGA described the proposed changes as “thoughtless and irresponsible,” with its director, Peter-Paul de Goeij, expressing concerns that the motions are based on inaccurate data.
“A majority in the house of representatives is taking an expensive gamble with online players who are now consciously opting for the legal offer,” said De Goeij. “If we soon find that politicians have made the wrong decisions too hastily, the house will be responsible for the negative consequences.”
Implications for the Dutch Gambling Market
The increased tax rate and the new regulations reflect the Dutch government’s attempt to regulate the gambling market more stringently. While the tax increase aims to boost state revenue, the advertising and slot bans are intended to mitigate the risks associated with gambling. However, the controversy and opposition suggest that the road to implementing these changes may be fraught with challenges.
As the situation develops, the Dutch gambling industry will closely watch the minister for legal protection’s decisions, which will significantly impact operators and players alike. The balance between regulation and maintaining a healthy market will be crucial for the future of the Dutch gambling landscape.
Source: “Netherlands coalition agreement proposes increased gambling tax of 37.8%”. igamingbusiness.com. May 16, 2024.