Netherlands Mulls Hiking Gambling Tax

Two Dutch MPs have filed an amendment to the Gambling Tax Act that would increase the tax on operators by 1 percent. That would bring it to 30.5 percent. They hope to lower excise duties on alcohol as a result.

Netherlands Mulls Hiking Gambling Tax

Dutch MPs Silvio Erkens and Chris Stoffer have filed an amendment to the Netherlands’ Gambling Tax Act that would increase the tax on operators by 1 percent to 30.5 percent, iGaming Business reported October 25.

The raise in gambling tax is tied to an increase in excise duties on alcohol that comes into effect January 1, 2024. The MPs want to cut the excise tax by raising the tax on gambling, arguing that it will affect small businesses less than the gambling tax will and won’t raise that much money.

The lawmakers originally wanted to apply the increase only to online gambling, but couldn’t because the original law doesn’t differentiate between online and brick-and-mortar gambling.  The online market launched two years ago.

In a separate but related development, Kansspelautoriteit (KSA), has fined operator GoldWin Limited $7,165,020 for offering illegal games to residents of the Netherlands. This violated the Dutch Gambling Act, according to Yogonet, because GoldWin doesn’t have a license issued by KSA.

KSA inspectors were investigating westcasino.com and found they could easily log in and play without encountering any preventative measures. The site also didn’t verify age.

KSA has warned GoldWin since January, but, said the regulator, it didn’t respond. In April GoldWin ceased the illegal offering, but Dutch law allows it to still be fined for its earlier violation.

KSA Chairman René Jansen commented, “We can often quickly put a stop to illegal supply with an order subject to a penalty. This does not mean that previously committed illegal activities disappear from view: they can still be punished.”