The gambling tax in the Netherlands could see a substantial increase to 37.8% following a coalition agreement between four political parties. This proposal marks a significant shift in the regulatory landscape for the country’s gambling industry.
According to a report by CasinoNieuws.nl, the budgetary appendix to the agreement indicates that the gambling tax rate in the Netherlands will rise from 30.5% to 37.8% if the agreement is implemented. This change is expected to bolster the state treasury with an additional €202 million (£173.3m/$219.6m) annually from gambling tax contributions. The political parties involved in this agreement are PVV, VVD, NSC, and BBB.
In November, seven parties expressed their intention to generate an additional €200m-€400m in state contributions through this tax increase. The coalition agreement, titled “Hope, Courage and Pride,” is set to be presented today, 16 May.
Following the announcement of the proposed tax increase, the Netherlands Online Gambling Association (NOGA) expressed significant concerns. NOGA director Peter-Paul de Goeij believes that the proposals will negatively impact channelisation towards the Netherlands’ legal operators. De Goeij argues that the additional revenue for the state will come at the cost of social harm to players.
De Goeij stated, “The proposed increase in the tax rate by no less than 7.3% endangers the viability of the legal Dutch gambling market. The intention of the forming parties will lead to an even further decline in the legal gambling supply. This is extremely risky, knowing that illegal parties do not pay taxes and are not bound to the duty of care as prescribed in Dutch legislation and regulations. They are already ostentatiously luring Dutch consumers.”
The Dutch gambling association Van Kansspelen also voiced its astonishment at the proposals. The association agrees with NOGA that the plans could drive players towards offshore operators, undermining the legal market. Van Kansspelen chairman Henry Meijdam commented, “It is completely socially irresponsible because this inevitably leads to major problems and costs regarding safety and care.”
The proposed tax increase comes amidst a broader context of regulatory changes in the Dutch gambling sector. Recently, the country’s house of representatives voted to ban online gambling advertising and “high-risk” gambling, including online slots. The house voted to prohibit all targeted advertising, adding to the existing ban on untargeted advertising, which took effect in July 2023. This includes bans on mass advertising through television, radio, and sports sponsorships.
Additionally, the house has voted to ban online slots due to concerns over the lack of player control in such games. This motion, put forward by Socialist party MP Michiel van Nispen, reflects growing unease over the social impact of online gambling. Although the bans have passed a house vote, it is up to the Netherlands’ Minister for Legal Protection, Franc Weerwind, to review and decide whether to approve the changes.
The proposed bans have faced fierce opposition from the gambling industry. NOGA has criticized the proposed changes as “thoughtless and irresponsible,” arguing that they are based on inaccurate figures. De Goeij warned, “A majority in the house of representatives is taking an expensive gamble with online players who are now consciously opting for the legal offer. If we soon find that politicians have made the wrong decisions too hastily, the house will be responsible for the negative consequences.”
