Licensed operators will be able to offer online gambling in the Netherlands on a regulated basis from 1 January 2015 under legislative proposals published by the Dutch government yesterday.
The draft Dutch Remote Gambling Act proposes unlimited licences across all major products and a lower tax rate - 20% of gross profit – than that originally announced in the ruling VVD and PvdA coalition agremeent last October.
Justifying the lower levy, the Ministry of Security and Justice said: “The Netherlands applies a rate at the top of that currently applied to online gambling. In neighbouring countries with a higher percentage, providers are put off [from applying for licences] and players are tempted to continue to play with unlicensed providers domiciled abroad which promise a higher payout.”
The most radical overhaul of the country’s Betting and Gaming Act (Wet op de Kansspelen or “WoK” in Dutch) since 1964 will also establish a central registry of excluded gamblers which will span remote channels, physical arcades and casinos; will expand the enforcement tools at the disposal of the Dutch Gaming Authority and adjust the relevant tax laws, introducing a differential rate for remote and land-based, the latter remaining at 29%. Payment processors will also be compelled to contribute to supporting addiction treatment programmes.
Announcing the opening of a eight-week consultation on the proposals set to run until 20 July, the Ministry said the expected effects of the scheme included:
“[A] responsible, reliable and controllable supply of remote gambling that will meet 75% of the existing demand, a reduction in 2017 of the number of at risk players from 92,000 to 52,000 and stabilisation of the number of problem gamblers at 20,300.”
Dutch State Secretary for Security and Justice, Fred Teeven, emphasised in an interview with Economie that explicitly legalising remote gambling and advertising did not run contrary to the government’s stated aims of limiting gambling addiction: “You get more insight into problem gamblers and can also intervene in a more focused way.”
The president of trade body the Netherlands Foundation for Online Gaming (STIOG) Robin Linschoten however told De Telegraaf that the collection of 20% of operators’ gross profits, of which a fixed amount will go towards supporting the anonymous treatment of problem gamblers and research into gambling addiction, was still too high, making applying for a licence less attractive.
“The government has calculated that a tax rate of 10% will lure more companies to the Netherlands and the Treasury will yield much more”, said the ex State Secretary of Social Affairs.
Linschoten, who heads an organisation backed by online operators such as Unibet as well as land-based concerns such as Kroon Casino and Oranje Casino, also argued the government’s idea of a central register of problem gamblers was not necessarily an effective strategy. “Many providers now do much more voluntarily to prevent addiction problems. Experience shows that aid only works if it takes place [completely] anonymously. If problem cases come with their Social Security number on a list, this will deter them from seeking help.”
Article written by Katy Stirland
