Last year, the Netherlands announced a big change in the Dutch gambling scene. As of July 1 2023, the country imposed a ban on advertising gambling out in the open, on our TV screens, in magazines, and over the radio — but that’s not all.
Now, new changes are being proposed.
So, what are the proposed changes for Dutch gambling sites?
Let’s start with the first:
If the Dutch cabinet agrees, the Dutch gambling scene may see increased taxes for online gambling operators.
This comes after two Dutch MPs proposed an increase in online gambling tax in October of 2023. The increase may be implemented as early as 2025.
The gambling industry is certainly a good area to find some extra money, with the best online gambling sites (according to plainenglish.io) bringing in plenty of turnover.
But let’s take a step back for a second. What exactly is being proposed?
Submitted to the Dutch parliament in October of last year, the proposal in question suggests that gambling operators should be asked to cough up more tax.
If the proposal is accepted, it will amend article 5, paragraph 1 of the Netherlands’ Gambling Tax Act.
This means that online gambling site operators in the Netherlands will see their tax increase by a whole percentage, rising to 30.5%.
Why is the tax changing?
This story actually starts with increased taxes on alcohol. From January 2024, the excise duty on alcohol was increased by 16.2%. However, the result of this increase isn’t exactly good.
Firstly, it is expected to cost a casual €74 million, and secondly, it will likely affect small businesses in the Netherlands.
So, how can the Netherlands bring in some more money and prevent further tax increases on other goods? One way is by setting their sights on the Dutch gambling industry.
By proposing an increase in tax on gambling sites, the amendment suggests a method that would kill two birds with one stone: the government can bring in more money, and they can also prevent increased taxes in other areas.
Sounds like a plan if you ask us!
Why should gambling sites in particular pay more tax?
It’s an interesting avenue to go down for the Dutch government, but to be fair, they’re looking in the right place.
The Dutch gambling scene is super popular, which in turn means they are super profitable.
According to the amendment, the ever-growing popularity of online gambling sites has led to the industry enjoying significant turnover.
This isn’t exactly news, either. In fact, the average Dutch person gambles on average two times per week using online gambling sites.
And those frequent users bring in a lot of money to gambling companies.
Just how much? Well, since the legalisation of online gambling sites in 2022, gambling companies earned a cool €1.1 billion in their first year.
Still enjoying a good turnover
As explained above, should this proposal be implemented by the Dutch government, this change will come as the second major change in two years for the Dutch gambling scene.
In July 2023, the Netherlands began ripping down the many cheesy gambling posters on bus stops, silenced the ear-splitting gambling advertisements that perforated podcasts, and halted the vibrantly coloured TV ads depicting people with confetti, a deranged smile, and a shower of money.
All of this was part of an important rule change whereby the Netherlands imposed a ban on advertising gambling out in the open, on our TV screens, in magazines, and over the radio.
However, given the addictive nature of gambling, and the huge turnover the industry brings, it doesn’t seem to be suffering much as a result of the ban.
When will this change take place?
At the moment, the increased tax on Dutch gambling sites has yet to be implemented. For now, it’s just a proposal.
This means that it must first be accepted by the Dutch government.
However, should this happen, things could change quite quickly, as MPs are advising that the Dutch government implement this tax increase as soon as 2025.
Let’s see what’s on the cards!
A financial limit for gamblers
This isn’t the only change making its way to the Dutch gambling industry, however.
On top of increased taxes, the House of Representatives has approved the Christian Union party’s proposal to restrict online gambling.
This would mean that a financial gambling limit would be set for all gambling platforms.
And what would this limit look like? Gamblers will only be able to gamble up to €150 per month across all gambling platforms.
Initially, it was proposed that this limit would only apply per platform.
Now that the decision to impose this limit has been reached, the parliament aims to impose it before the summer.
Gambling companies have a duty of care to their customers, and that duty can’t be fulfilled if they don’t prevent their customers from falling into financial ruin.
Indeed, it looks like the Dutch gambling sector will see many changes in the coming year, let’s hope they are for the best.
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