Netherlands Parliament debates tax & market potential

In response to growing interest from international operators wanting to participate in the soon to be regulated Dutch online gambling market, the Netherlands Parliament has re-opened discussions on efficient tax levels and market potential.

The April release of the annual report by the Dutch Games of Chance Authority (KSA), has noted that more than 200 operators have expressed interest in acquiring a Dutch license. The positive response to licensed online gambling, has renewed the interest of the Netherlands Parliament to review its market potential.

The Netherlands State Secretary has been asked to review its estimates of the market potential on online gambling. Furthermore Parliament has requested for potential tax revenues to be re-examined by the Secretary.

Debate on the Netherlands tax framework for online gambling continues to be a key agenda and a point of difference for its stakeholders. It appears that the government considers a 20% tax rate suitable for online gambling, however the market has seen opposing calls for the tax level to be raised to 29% which would be in-line with land-based operator taxes.

Tax advisors however have warned the Dutch government against raising the tax to stringent levels, which may put off international operators from entering the market and drive down consumer value, which could lead to an increase in customer play with illegal operators.