The Dutch wagering levy might increase to 37.8% following a four-party coalition accord, leading to the national treasury receiving €202 million in gambling tax income annually.
The accord’s financial addendum indicates that if the agreement is enacted, the Netherlands’ gambling tax will be modified from 30.5% to 37.8%.
The agreement, titled “Hope, Courage, and Pride,” will be unveiled today (May 16th).
The parties involved in the agreement include PVV, VVD, NSC, and BBB.
In November, seven parties declared their intent to boost national income by €200 to €400 million by raising gambling levies.
The Dutch Online Gambling Association (NOGA) expressed dissatisfaction with the plan, arguing that these proposals would negatively impact the channeling of legal operators in the Netherlands.
NOGA director Peter-Paul de Goey believes that the increase in national income will come at the cost of social harm to bettors.
The suggested tax increases of at least 7.3% will destroy the legal betting market in the Netherlands,” stated De Goey. “The government’s plans to suppress gambling will only force individuals towards unlawful operators.
“This is a significant issue, as these illicit organizations evade taxes and disregard Dutch regulations. They are actively attempting to attract Dutch consumers.”
The Dutch Association of Gaming, Van Kansspelen, also voiced its “astonishment” at the proposals. They concurred with the NOGA that the plans could actually harm players, pushing them towards offshore providers.
“This is entirely irresponsible,” remarked Henry Meijdam, Chairman of Van Kansspelen. “It will result in serious problems and expenditures in terms of safety and care.”
The Netherlands is contemplating a tax rise following the Dutch parliament’s vote to prohibit online gambling advertising and “high-risk” gambling, including online slot machines.
The parliament voted to ban all targeted advertising. The Netherlands already prohibited non-targeted advertising, with a new ban taking effect in July 2023. The Netherlands forbids mass advertising through media such as television, radio, and sports sponsorships.
Moreover, the legislative body voted to prohibit online slot machines. This is because of worries about players’ lack of control over the results of such games. Socialist representative Michiel van Nispen started these proposals.
While the legislation has been approved by the legislature, it will eventually be reviewed by Dutch Minister of Legal Protection Frank Weverwind, who will decide whether to authorize these changes.
These proposals have been met with strong opposition from the industry. NOGA argues that the prohibition will instead push players towards the illegal market.
NOGA characterizes the proposed changes as “reckless and irresponsible.” De Gooy is concerned that these proposals are based on inaccurate information.
“The majority in the House of Representatives is taking a risky gamble on online players who are now consciously choosing legal products,” stated De Gooy.
“If we soon discover that politicians have made a hasty and incorrect decision, parliament will be accountable for the negative consequences.”
Sign up for the iGaming newsletter.