Online gambling companies that receive a license to operate in the Netherlands will pay a 20% tax on gross gaming revenue. On Friday, the Dutch Council of Ministers confirmed that they wouldn’t require licensed online operators to pay the 29% tax rate currently inflicted on the country’s land-based gambling businesses. However, Dutch News reported that licensed online operators would also have to ante up 0.5% of revenue to a problem gambling mitigation fund and a further 1.5% to Dutch gaming regulator Kansspelautoriteit (KSA).
The Netherlands has been inching towards liberalizing its online gambling market in fits and starts as it looks to diversify beyond the current Staatsloterij state-run monopoly. The Dutch Remote Gambling Act reached the end of its European Commission-mandated standstill period last month but the regulatory nuts-and-bolts have yet to be issued, calling into question whether the state’s regulated market will be able to meet its targeted January 1, 2015 launch date.
The Dutch also intend to open up their lottery industry to international competition. To help smooth that process, the required 50% of charity lottery profits that must by law be directed towards worthy causes has been reduced to 40%. In related news, this week saw the appointment of Peter Kuipers as interim CEO of state-owned De Lotto – which currently holds a monopoly on sports betting – following the departure of former CEO Joost Otterloo. In January, De Lotto and Staatsloterij announced they were discussing the possibility of a merger to better compete with the expected influx of international online operators.
Finally, the Dutch government has confirmed plans to privatize the Holland Casino land-based monopoly. Ten of Holland Casino’s 14 branches will be sold off under their current name, with the other four locations sold individually. The government will also open up bidding for two additional casino licenses that will take effect in 2017. The financially struggling Holland Casino franchise recently partnered with online gambling technology provider Playtech to prepare for the market’s liberalization.
