A proposed collaboration pact among four Dutch political groups suggests a hike in the wagering levy to 37.8%.
CasinoNieuws.nl reports that the financial addendum of the agreement indicates that if the accord comes into force, the wagering tax in the Netherlands will be boosted from 30.5% to 37.8%.
The national exchequer anticipates generating €202 million (£173.3 million/$219.6 million) in annual income from the wagering tax. The parties involved in the agreement include the Liberal Party, the People’s Party for Freedom and Democracy, the Christian Democratic Appeal, and the Farmer-Citizen Movement.
In November, seven political groups announced their aim to enhance national revenue by €200 million to €400 million by increasing the wagering tax.
The coalition agreement, titled “Hope, Courage, and Pride,” will be made public today (May 16).
**Industry Response**
The Dutch Online Gambling Association (NOGA) expressed dissatisfaction with the proposed tax hike.
Peter Paul de Goeij, head of NOGA, believes that the proposals will have a detrimental impact on the channeling of legal operators in the Netherlands. De Goeij also believes that the increase in national income will come at the expense of social harm to players.
The proposed tax rise of 7.3% on wagering by the Netherlands government could have serious repercussions for the lawful gambling sector in the Netherlands, according to industry specialists. They worry that the increase, coupled with the proposed prohibition on online slots and other high-risk wagering, will drive players toward illicit operators.
“This tax hike is a death knell for the legal wagering market,” said De Gooy, a spokesperson for the Dutch Gambling Association (NOGA). “It will make it impossible for legal operators to contend with illicit organizations that don’t pay taxes and don’t have to follow Dutch rules.”
The NOGA also expressed worry that the proposed prohibition on online advertising will further harm the legal market. “This is a dangerous move,” said De Gooy. “It will only make it easier for illicit operators to attract customers.”
The Dutch Gambling Association, Van Kansspellen, echoed these concerns, stating that the proposed changes could have a detrimental impact on players, pushing them toward overseas operators. “This is completely irresponsible,” said Henry Meydam, chairman of Van Kansspellen. “It will lead to substantial problems and costs in terms of player safety and care.”
The Dutch parliament has already voted to ban online gambling advertising, as well as “high-risk” gambling, including online slots. The ban on targeted advertising will come into effect in July 2023. The Netherlands has already prohibited mass advertising through media such as television and radio, as well as sports sponsorship.
Furthermore, the legislative body decided to prohibit virtual slot machines. This is because of worries about players’ inability to control the final result of these games. Social Democratic Party representative Michiel van Nispen suggested these proposals.
While the legislature voted in favor of the prohibition, it will ultimately be up to Dutch Minister of Legal Protection, Frank Weerwind, to examine the legislation and determine whether to authorize the modifications.
The sector has strongly opposed these proposals. NOGA claims that the ban will instead drive players towards the illicit market.
NOGA characterized the proposed changes as “rushed and reckless.” De Gooy expresses concern that the initiatives are based on inaccurate information.
“The House majority is taking a risky gamble on online players who are now deliberately choosing legal services,” stated De Gooy.
“If we soon discover that politicians have made a hasty and incorrect decision, the legislature will be accountable for the negative repercussions.”
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