A plan in the Netherlands to equalize online gambling tax rates with those of brick-and-mortar casinos has drawn opposition from online gambling operators.
The Netherlands is considering a bill to legalize online gambling. The bill originally set the tax rate for online casinos that get licensed in the country at 20 percent. That plan has been amended to raise the tax rate to 29 percent, in line with the tax rate on the country’s brick-and-mortar casinos. That rate could fall to 25 percent after three years.
However, representatives of the online industry say the change will mean less operators seeking licenses and give a competitive advantage to unlicensed foreign operators, which already serve as many as 1,5 million Dutch gamblers.
Rutger-Jan Hebben of Speel Verantwoord, the trade organization of online operators looking to enter a regulated Dutch market, warned that the amendments would result in “a less attractive product offering for Dutch players,” according to yogonet.com.
“Game variety and payout rates outside of the Netherlands will end up being more attractive.” He said. “A significant portion of the one million people in the Netherlands who are already playing online will thus keep opting for unlicensed, non-tax paying operators.
“Moreover, if there must be a uniform tax rate, it should apply to all equally—including land-based lotteries which are currently paying, as the Netherlands Gaming Authority recently concluded, an effective tax rate that is far lower.”
The higher tax, however, is expected to be approved and added to the country’s proposed online gambling bill.
