Dutch Operators Cry Foul over Tax Hike Plans
The Dutch Online Gambling Association (NOGA) has raised concerns about the potential consequences of a proposed gambling tax increase in the Netherlands.
The ATR argues that the new regulations impose an unnecessary technical burden on operators.
The new taxation plans are part of a proposed “budgetary appendix of collation agreements” by a new coalition government between 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 group seeks to increase the gambling tax from its current 29.5% to 37.8%.
NOGA warned that the proposed tax increase threatens the survival of the legal Dutch gambling market, pointing out that recent reports indicate a stagnation in player migration to licensed operators.
This is extremely risky, knowing that illegal parties do not pay taxes and are not bound to the duty of care as prescribed by Dutch legislation and regulations, are already pushing for the business of Dutch consumers. NOGA fears that the intended budgetary gain of €200m will be in stark contrast to the significant social damage that will occur because Dutch consumers increasingly resort to illegal providers, who do not pay taxes.
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New Tax to Impose Unneeded Burden on Operators
Additionally, the Dutch Advisory Board on Regulatory Burden (ATR), a neutral watchdog that assesses the impact of regulations on businesses, consumers, and the public sector, expressed reservations about the proposed new rules for online gambling.
The ATR argues that the additional requirements impose an unnecessary technical burden on operators, which could potentially stifle innovation and growth in the industry.
Dutch Lawmakers Ban Online Gambling Ads
Last month, the Dutch House of Representatives voted to ban online gambling ads and high-risk games, such as slot machines. The approved ban covers all forms of online advertising, going significantly further than the restriction on untargeted advertising introduced in July 2023.
The lawmakers also adopted ten other motions, including mandatory financial risk assessments and compulsory identification procedures for gambling activities.
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