A collaborative pact among four Dutch political groups suggests boosting wagering levies to 37.8%.
The financial addendum of the accord indicates that betting taxes in the Netherlands would be elevated from 30.5% to 37.8% if the agreement is enacted.
According to CasinoNieuws.nl, Dutch gambling taxes could ascend to 37.8% following the four-party coalition accord.
The national exchequer will garner an annual revenue of €202 million (£173.3 million/$219.6 million) from wagering taxes.
The parties involved in the agreement encompass PVV, VVD, NSC, and BBB.
In November, seven political entities declared their aim to augment the national contribution by €200 million to €400 million by raising gambling taxes.
The coalition agreement, titled “Hope, Courage, and Pride,” will be released today (May 16).
Industry Response
The Dutch Online Gambling Association (NOGA) conveyed disappointment with the proposed tax hike.
NOGA chairman Peter-Paul de Goeij believes the proposals will adversely affect channelisation for legal operators in the Netherlands.
De Goeij also believes that the supplementary funds for the national contribution will come at the expense of social harm to players.
The Netherlands’ government’s proposed tax boost of 7.3% poses a significant danger to the legal gambling sector in the nation, according to De Goey, a representative for the industry. He contends that the tax increase, coupled with the proposed prohibition on online gambling promotion and “high-risk” gaming, will push players toward illicit operators.
De Goey cautions that illegal gambling entities function outside the law, evade taxes, and are not subject to the same rules as legal operators. This puts players at risk and could result in substantial problems and expenses in terms of safety and care.
The Dutch Gambling Association Van Kansspelen also voiced concerns about the proposed changes, asserting that they could have a harmful effect on players and drive them toward offshore operators.
The Netherlands has already prohibited non-targeted advertising, with a new ban on all targeted advertising set to take effect in July 2023. The country also forbids 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 that participants lack control over the results of such games. These proposals were presented by Socialist representative Michiel van Nispen.
Although the legislature voted to outlaw the machines, the ultimate decision will be made by the Dutch Minister of Legal Protection, Frank Weverwind, who will determine whether to endorse the modifications.
These proposals have been met with strong resistance from the sector. NOGA asserts that a prohibition would instead drive participants towards the illicit market.
NOGA characterized the proposed alterations as “rash and irresponsible.” De Gooy is concerned that the proposals are founded on inaccurate information.
“The House majority is taking a risk at the expense of online participants who are currently deliberately selecting 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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