Dutch trade body rails against right-wing coalition’s planned tax hike
The Netherlands Online Gambling Association hits out against incoming government’s budget which includes raising gambling tax rate in the Netherlands to 37.8%
The Netherlands Online Gambling Association (NOGA) has slammed a right-wing coalition proposal to raise GGR tax to 37.8% in the market.
The proposal, which was first reported by Casino Nieuws, has been put forth by the Nationalist Party for Freedom, the People’s Party for Freedom and Democracy, the New Social Contract and the Farmer–Citizen Movement.
The four parties will form part of the government that has taken six months of negotiations to bring about following the country’s November elections.
The gambling tax hike, from its existing 30.5% mark, forms part of the coalition’s budget, with the quartet expecting more than €202m to be generated from the 7.3 percentage point raise.
Peter-Paul de Goeij, NOGA director, said the tax hike “endangers the viability of the legal Dutch gambling market”.
The NOGA head’s primary concern is the leakage to the black market, with customers potentially shifting to illegal operators as licensed firms adjust their offerings in relation to the new tax scheme.
He said: “This is extremely risky, knowing that illegal parties do not pay taxes and are not bound to the duty of care as prescribed in Dutch legislation and regulations, are already ostentatiously luring for the business of Dutch consumers.
“NOGA fears that the intended budgetary gain from this tax increase of €200m will be in stark contrast to the significant social damage that will occur because Dutch consumers will increasingly resort to illegal providers, who do not pay taxes.
“These providers will experience the benefits of de-channelisation, but the financial and emotional burdens, for example because no action is taken in problematic gaming behaviour, will be passed on to the Dutch taxpayer,” de Goeij added.
The potential gambling tax hike in the Netherlands comes after Socialist Party proposals to ban online slots and advertising in the country were backed by MPs last month.
Betsson CEO Pontus Lindwall told EGR he does not expect those measures to come to fruition while La Française des Jeux (FDJ) management said the vote would not impact its planned acquisition of Kindred Group.