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Summary:
- Under the new proposal, Dutch iGaming tax will rise from 29.5% to 30.5%
- The proposal was put forward by members of the VVD, the largest party in the lower house
- The Dutch iGaming market is stabilizing following rapid growth over the last two years
Dutch online gambling operators are facing a potential tax hike, with two lawmakers pushing for the measure as part of proposed amendments to the country’s taxation laws.
The massive growth enjoyed by the market over the last two years was cited as the principal reason for the proposal, as the Netherlands now becomes home to 27 active operators, up from the initial 10 when the market launched in October 2021.
Tax Hike Needed Following Massive Market Growth
According to Dutch MPs Chris Stoffer and Silvio Erkens, the government must impose a higher tax on online gambling operators as their turnover has significantly increased since the KOA Act came into effect in 2021.
Under a draft amendment submitted by the pair to the Dutch Parliament, gaming tax will be set at 30.5%, up 1% from the existing 29.5% paid by operators. This figure translates to an increase of €26 million.
But before the new rate can be enforced, changes must be made to certain aspects of the law, particularly the differentiation of the various forms of gambling in the country, the MPs stated.
Stoffer and Erkens are both members of the People’s Party for Freedom and Democracy (VVD) which occupies 34 seats in the House of Representatives, making it the largest party in the lower house.
The Dutch online gambling market experienced rapid expansion within its two years of operations, with annual growth projected at 15%. The country’s gambling regulator, the Kansspelautoriteit (KSA), stated in its latest monitoring report that the market is now stabilizing and is “developing as expected”, an indication that the sector has matured.
New Measures Introduced as Market Stabilizes
Even as the online gambling market appears to have reached its maturity, the KSA and the government continue to closely monitor developments, introducing new rules to improve customer protection, including an advertising ban which took effect on July 1.
The measure prohibits online gambling ads across most media channels, such as television, radio, and print. Operators are also not allowed to promote their products and services in public areas, such as bus shelters, billboards, cafes, and even gaming venues.
Additionally, sponsorship of sports clubs and events by gambling companies will become a thing of the past, with the ban to be implemented in phases starting in 2024.
