The Dutch Lower House approved earlier this week the previously proposed temporary increase of the tax paid by regulated gambling operators servicing local customers, Dutch gambling news outlet GaminginHolland reported earlier last week.
Dutch lawmakers previously called for a 1.1% increase in the existing gambling tax. This means that operators licensed by local gambling operators will be required to contribute a 30.1% tax. The new rate will be valid through January 1, 2019, or six months after the expected adoption of the country’s new gambling regulatory regime.
Members of the Dutch Lower House also voted on and rejected a proposal from MP Aukje de Vries that called for the duration of the temporary tax hike to be limited to a year. The Dutch politician and her party, the People’s Party for Freedom and Democracy (Volkspartij voor Vrijheid en Democratie), presented earlier this week the amendement to the gambling tax increase bill that included the above-mentioned limitation.
It is also important to note that the tax hike is part of the Dutch government’s larger tax package for 2018.
Current Gambling Taxation and Regulatory Regime and Proposed Changes
At present, all regulated operators servicing local bettors and players are paying a 29% annual tax. If the proposed tax increase is eventually implemented, and as seen it has a good chance to be implemented, operators will pay a 30.1% tax instead. Under the legislative proposal, which was approved by the Dutch Lower House, the 29% tax rate will be reintroduced six months after the enforcement of the Netherlands’ new gambling law.
It was determined by sponsors of the legislative proposal that Kansspelautoriteit, the Dutch gambling regulator, will need that six-month window in order to be able to make all the necessary adjustments in relation to the new regulatory regime in the Netherlands.
Dutch lawmakers have previously commented that the new gambling laws could finally be implemented on July 1, 2018 after multiple delays. Among other things, the new law is expected to regulate the provision of online gambling in the country and to allow for interntional operators to apply for an iGaming license from Kansspelautoriteit.
Earlier this year, the regulator introduced a new set of rules that basically made it impossible for unlicensed online gambling operators to target Dutch players and provide their services to them. The Netherlands Gaming Authority explained that it had decided to undertake that move in order to remind violators of the country’s gambling laws that online gambling was illegal in the country and that all breaches would be sanctioned in due manner.
The Dutch Lower House approved last year a bill that would change the legal status quo in the counry and permit the licensed provision of online gambling services, but the Senate is yet to vote on the piece.…
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