NOC*NSF asks incoming government to reconsider gambling tax increase
As we reported earlier, the Netherlands’ incoming government has proposed to increase the current gambling tax rate of 30.5% to 37.8% of GGR. The sharp increase is expected to have a significant, detrimental effect on the Dutch regulated gambling market.
In response to these plans, NOC*NSF, the Dutch overall coordinating sports federation and Olympic Committee, has asked the incoming government to reconsider the planned increase, as it would have a severe impact on Nederlandse Loterij's remittances to organized sports in the country.
A similar appeal by the Director of the Royal Dutch Cycling Association (KNWU) was co-signed by several MPs, including representatives of the incoming government coalition (PVV, VVD), as well as two opposition parties (GL-PvdA, CDA). Combined, these groups represent 89 out of 150 seats in the Lower House, which casts doubt on the overall support of this specific proposal.
Regulus: “Gambling tax increase likely to lower total tax yield”
UK-based consultancy firm Regulus partners has calculated that the proposed increase in the Dutch gambling tax rate could lead to lower total tax yields.
Regulus assumes that Netherlands-licensed online operators would be forced to cut down on bonus offerings and other incentives, leading to a noticeable drop in market channelization rates and, thus, a smaller tax base on which the higher gambling tax can be levied:
“Even putting to one side the safer gambling problems caused by encouraging to use the black market, the tax increase could be a material failure in purely fiscal terms also. The incremental value of 37.8% tax in 2025 on an unchanged online gambling market according to our forecasts would be €133m (on 25% bonusing), supporting the government’s overall yield calculations."
“However, if domestic licensees dropped incentives from 25% to 10% to mitigate the cost increase on non-cash revenue, the incremental yield would be just €20m even if there were no change to channelling."
“Far worse, a 10ppt shift in channelling caused by the improved relative attractiveness of black-market bonuses would cost the existing tax base c. €55m per annum. I.e., the proposed Dutch tax increase could very well make current online gambling tax yields go down, not up, based upon some simple and conservative player behaviour assumptions."
German regional court rules that player claim suits are to be referred to the ECJ
The Regional Court of Erfurt ruled last week that player claims against unregulated online operators – in so far as the issues raised touch upon EU law – must henceforth either be suspended or referred to the European Court of Justice (ECJ).
This ruling covers suits against both sports betting and casino operators, which means that questions could be raised before the ECJ that go beyond Germany's previous sports betting regime which – due to some specific intricacies of prior German regulations – has been explicitly found to be not compliant with EU law.
This means the ECJ could rule in such a way that its findings will impact player compensation suits in other EU countries – including, of course, the Netherlands.
Don't miss the 2024 Gaming in Holland Conference!
The 2024 Gaming in Holland Conference, which will take place June 6, at the KIT Royal Tropical Institute in Amsterdam, will focus on the Netherlands’ highly volatile political climate, player claims, the possible end of the country's land-based gambling monopolies, new responsible gambling rules, and much more.
Confirmed speakers include:
René Jansen, Chair of the Netherlands Gambling Authority
Fedor Meerts, Department Head Integrity & Gambling, Ministry of Justice & Security
Fred Teeven, former State Seccretary of Justice
Nils Andén, CEO of Kindred
Matevz Mazij, CEO, Bragg Gaming Group
Dinos Stranomitis, Director & COO of Altenar
Josh Hodgson, Senior Associate at H2 Gambling Capital
& many more!
With a packed agenda full of highly relevant topics, the 2024 edition of the GiH Conference will certainly not be boring!
Don't miss it! Register today.
Other events
The following event(s) may be of interest to the GiH community.
The trade show iGB L!ve returns to Amsterdam from July 16-19.
The 14th European Conference on Gambling Studies and Policy Issues, organized by the European Association for the Study of Gambling (EASG), will be held September 10-13, 2024, in Rome, Italy.
The 2024 Gaming in Germany Conference returns to Berlin on November 5, 2024. Save the date!
Netherlands Gambling Authority issues 29th remote license to iCasino
Today, the Netherlands Gambling Authority has issued the country's 29th remote gambling license to iCasino. Under the terms of its license, iCasino will be allowed to offer online casino games – but not sports betting, poker or bingo – in the country.
iCasino is headed by Paul Strikers, a well-known figure in the Dutch gambling market who previously worked for Novomatic and headed Eurocoin Interactive.
Strikers commented: “We are convinced that we can offer a unique experience that will enrich the Dutch market.”
iCasino is expected to go live shortly.
Other news
Despite some earlier speculation, Entain is apparently not considering the sale of BetCity.
XY Legal Solutions has recently expanded its Compliance Quality Mark for iGaming Affiliates – known as QMRA – to include the Ontario market.
The Malta Gaming Authority (MGA) has announced the cancellation of Tipbet's operating authorization.
Rob Norton, the President of US-based casino operator Cordish Gaming Group, estimates that online casinos cannibalize no less than 15 to 23% of existing land-based business.
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