The Dutch Online Gambling Association (NOGA) has expressed “great concern” about a proposed increase in the gambling tax from 30.5% to 37.8%. The association’s remarks follow reports that a tax hike is planned by a potential new coalition government.

In a press release, Director Peter-Paul de Goeij stated that the proposed increase in the tax rate by no less than 7.3% “endangers the viability of the legal Dutch gambling market.”

“Recent reports from the Gaming Authority already show that channelization is under pressure, the growth of the gambling market is leveling off and this growth is also lagging behind other European countries,” he said.

“The intention of the forming parties will lead to an even further decline in the legal gambling supply. This is extremely risky knowing that illegal parties, which 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 €200 million 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.”

According to de Goeij, these illegal providers will experience the benefits of “decanalization,” but the financial and emotional burdens of unintended consequences such as no action being taken against problematic gaming behavior “will be passed on to the Dutch taxpayer.”

After six months of negotiations, the Party for Freedom (PVV) says it has agreed on basis to form a coalition government with the Party for Freedom and Democracy (VVD), the New Social Contract Party (NSC) and the Farmer-Citizen Movement (BBB). A proposed “budgetary appendix of coalition agreements” mentions a “structural taxation increase” in gambling tax to 37.8 percent.