Dutch casino players hit by temporary Gambling Tax hike

A temporary 1.1% casino gambling tax hike in Holland has come into effect after a host of delays including political uncertainty and lack of total agreement on the bill’s provisions which will open up the country’s gambling sector to overseas operators in a regulated market.

Dutch gambling tax hike
Dutch casino players hit by temporary gambling tax hike

However, the country’s lawmakers have been quick to point out that the measure is only temporary and that six months after the new bill is passed into law, the rate will reduce to its previous percentage.

  • New tax rate will see operators pay 30.1% as opposed to the previous 29%
  • Once the bill finally passes, it will be a further 6 months before the rate is reduced again

Delayed Bill

On Tuesday, Hollands caretaker government announced its 2018 budget plans and with it the tax hike for gambling operators.

Establishments had been paying a rate of 29% but the hike will now see that rise to 30.1% until six months after the gambling bill is signed into law with lawmakers explaining that the six-month extra time will allow the Dutch Gaming Authority to ‘bed in’ the necessary adjustments arising from the introduction of the new gambling law.

iGaming has become increasingly popular in the Netherlands but a lack of proper regulations has left operators working in a gray area with the Dutch regulatory aiming to make it harder for unregulated operators to target Dutch players.

The new gambling bill is expected to tighten up the current regulations with the Dutch gaming authority Kansspelautoriteit introducing new rules to the way iGaming services are provided in the country’s unregulated environment.

Gambling Tax Hike Opposition

The bill has come under fire from numerous angles but most notably industry operators such as Betsson who sought a court ruling. However, the court ruled in favour of the Dutch authority just this month.

If all now goes to plan, lawmakers have suggested the bill will finally pass into law at the beginning of July next year, meaning the earliest the operators gambling tax will be reduced back to its 29% rate will be the first of January 2019.

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