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Dutch Online Gambling Tax Rate Set
Saturday July 12,2014 : DUTCH COUNCIL OF MINISTERS FINALISES ONLINE GAMBLING TAX RATE
20 percent on GGR confirmed despite calls from the land gambling sector of 29 percent.
The efforts of land gambling interests to have an equal 29 percent tax rate imposed on the soon-to-be-legalised online gambling industry were rejected Friday when the Dutch Council of Ministers confirmed that the tax rate for online gambling operators licensed in the newly liberated market will be 20 percent.
Taking some of the gilt off that gingerbread, however, is a requirement that licensees cough up 1.5 percent of turnover to the regulator, Kansspelautoriteit, and another 0.5 percent to a problem gambling fund still to be formed.
In related news, the publication Dutch News reports that the government is to end its monopoly on Dutch gambling, and has agreed to split up and sell off its state-run casino monopoly Holland Casino group.
Junior justice minister Fred Teeven announced Friday that ten of the 14 land branches will be sold off under their current branding while the other four locations will be sold individually.
The cabinet is also planning to open up the land casino market to new providers from 2017, with two licenses on offer to suitable applicants, bringing the total number of terrestrial casinos in the Netherlands to 16, owned by seven different companies.
The Holland Casino group is currently in financial trouble due to declining visitor numbers.
Minister Teeven pointed out that all potential new owners will have to maintain the same strict anti-gambling policy as Holland Casino.
Ministers have also reached agreement on deregulating the lottery and opening up that market to outsiders…on condition they give 40 percent of their profits to good causes, a ten percent reduction on the amount current mandated on the state-owned lottery.
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