Major Reaction
Since opening in October 2021, the Dutch gambling market has never been far from the headlines.
The country, which already poses some of the strictest gambling restrictions in Europe, has now proposed to increase the tax on gambling companies from 30.5% to 37.8%. This has sparked a major reaction from operators within the country.
Support Across The Parties
Last week, a proposal was tabled to increase gambling tax that gained unanimous support from the four major parties: VVD, NSC, PVV, and the BBB. If this proposal is enacted, the tax on gambling companies will increase substantially by seven percent, potentially forcing operators to rethink their position within the market.
The belief is that by increasing the tax, the state will be able to raise an additional €200m-€400m in state contributions from gambling companies. This is part of a wider budgetary notion in the country that will also deal with other topics like asylum and fishing.
Industry Backlash
Of course, this proposal has received widespread criticism from within the Dutch market. The Netherlands Online Gambling Association (NOGA) has expressed its concerns over the proposals.
NOGA director Peter-Paul de Goeij believes that these proposals are ‘extremely risky’ and that they endanger the viability of the Dutch market. He also believes that it will lead to the decline of legal gambling providers in the country.
De Goeij is not alone in these concerns. Dutch Gambling Association, Van Kansspelen also believes this move will do more damage than good. They expressed their astonishment at the proposals, believing that this will inevitably drive players towards offshore operators and will make the Dutch market a less attractive place for licensed, established providers.
Continued Controversy
The Dutch market has been a hotbed of controversy since it launched, with barely a month passing without some sort of new restriction being put in place. Advertising was one of the government’s first targets, with a mass ban on advertising being approved in July 2023.
More recently, a total ban on online slot machines was proposed. The motion passed the house vote and now needs a ministerial seal of approval before it is enforced. Once again, this has raised concerns among operators, with many believing this is a slippery slope that will force players further and further away from a regulated gambling market.
