State Secretary: “Gaming Tax Increase Would Decrease Value of Holland Casino and Staatsloterij”

Last week, we already reported that the proposal by Representatives Pieter Omtzigt (CDA) and Elbert Dijkgraaf (SGP) to increase the gaming tax rate from 29 to 35.2% had been given the cold shoulder by the Ministry of Finance. Besides chasing away punters to foreign or even illegal operators, the increase, according to the Ministry, would also make life harder for the Tax Administration, without a commensurate increase in expected tax revenue to offset their new difficulties.

Yesterday, State Secretary Eric Wiebes added to these arguments. A significant increase in the gaming tax rate would also have “a substantial negative impact” on the value of state-owned Holland Casino and De Staatsloterij, which – not coincidentally – the current administration is hoping to sell in the near future.

 

Daily Fantasy Developments

Pay-to-play daily fantasy sports (DFS) operators have so far experienced a stunning break-out year in the US. Yet, trouble is looming, according to The New York Times:

“The New York State attorney general on Tuesday ordered the two biggest daily fantasy sports companies, DraftKings and FanDuel, to stop accepting bets from New York residents, saying their games constituted illegal gambling under state law.

The cease-and-desist order […] is a major blow to a multibillion-dollar industry that introduced sports betting to legions of young sports fans and has formed partnerships with many of the nation’s professional sports teams.

[…]  legal experts said the action was likely to reverberate in other states […]”

 

Florida, on the other hand, is looking to regulate daily fantasy sports, while the Massachusetts (state) Lottery is considering developing a daily fantasy sports game of its own.

Meanwhile, a capital markets adviser has claimed that a good chunk of the hundreds of millions of dollars in funding raised by DFS operators DraftKings and FanDuel this summer from prominent parties, such as Fox, Time Warner, NBC, Comcast, and Google, may not materialize after all: “the regulatory uncertainty surrounding the DFS sector had caused some investors to rethink their pledges.”

That hasn’t stopped FanDuel, however, from applying for a UK gambling license.

In the Netherlands, there may be as many as 1.3 million potential DFS players, according to a recent presentation by NL Kansspel.

 

“Social Gaming Continues to Deliver Growth”

Social gaming appears to be on the rise:

“Industry analyst Chris Krejcik said in a recent paper that social gaming is one of the most lucrative and fastest growing sub-sectors in the industry, revealing that social casinorevenues will reach $3.3 billion in 2015, rising to around $4 billion annually over the next two years.

Although the vertical is dominated by large players and tends to be over-crowded in an operational sense, there is still room for growth, he said.”

Aptly illustrating this trend, Caesars Interactive Entertainment, a subsidiary of land-based casino operator Caesars, has just posted another record quarter “thanks to its ability to convince more social gamers to open their wallets.”

 

Other News

Online casino Mr Green is aiming for a listing at the NASDAQ Stockholm.

 

EiG 2015 broke an attendence record.

 

EGBA welcomes a new Swedish member.

 

The value of GVC’s winning bid and 888’s losing offer for Bwin.party have by now almost converged in terms of total value.

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