Implications of proposed gambling tax hike in Netherlands

Lea Hogg May 21, 2024

Share it :

Implications of proposed gambling tax hike in Netherlands

The Dutch Online Gambling Association (NOGA) has expressed serious concerns over the proposed increase in gambling tax from 30.5 percent to 37.8 percent by a potential new coalition government in the Netherlands. This coalition comprises the Party for Freedom (PVV), the Party for Freedom and Democracy (VVD), the New Social Contract party (NSC), and the Farmer-Citizen Movement (BBB).

The Implications of the Tax Increase

The proposed tax increase, part of the “budgetary appendix of coalition agreements,” is expected to bring an additional €202 million annually to the state treasury. However, NOGA fears that this financial gain might be overshadowed by significant social damage.

Peter-Paul de Goeij, the general director of NOGA, warns that the tax hike could endanger the viability of the legal Dutch gambling market?He notes that channelization to licensed operators is already levelling off, and the increased tax could push Dutch consumers towards illegal providers who do not pay taxes.

Regulatory road ahead

The Dutch Advisory Board on Regulatory Burden (ATR), an independent watchdog, has questioned the need for proposed new regulations for online gambling. They argue that these new requirements could represent an unnecessary technical burden for operators.

In April, a narrow majority of MPs in the Dutch House of Representatives voted in favour of motions to ban online slots and prohibit online gambling advertising. Other motions call for mandatory financial risk checks and identification for gambling. These votes do not guarantee the adoption of these measures, as Franc Weerwind, the minister for legal protection, will review the proposals and decide whether they should be approved

The proposed tax increase and regulatory changes mark a critical juncture for the Dutch gambling industry. While the tax hike could potentially fill state coffers, the social implications and impact on the legal gambling market cannot be ignored. As the Dutch gambling landscape continues to evolve, all eyes will be on the new coalition government’s next moves and their long-term effects on both operators and consumers.