Dutch Government Criticized for Gambling Tax Hike Amid Industry Concerns
The Dutch government’s decision to implement a gambling tax hike has sparked criticism from the industry, particularly from law firms and consultants who argue that the move could damage the regulated market. Despite warnings from various stakeholders, the government has pushed forward with the tax increase, a decision that has caused significant concern among licensed operators in the Netherlands.
Industry Pushback on the Tax Increase
Earlier this year, the Dutch government proposed raising taxes on the gambling sector, expecting to collect hundreds of thousands in additional revenue.
The tax hike was recently approved, much to the dismay of the gambling industry, which had already been grappling with new restrictions, including a ban on untargeted gambling ads and the phasing out of sponsorship deals.
Industry representatives argue that the higher tax rate will make it difficult for regulated operators to compete with the black market, which could result in a decline in revenue for licensed companies.
Kalff Katz & Franssen, a prominent gambling law firm, voiced strong opposition to the government’s decision, describing it as “deaf to the industry’s concerns.”
Ignoring a Report Highlighting Potential Risks
In an interview with iGB, Alan Littler, a representative of Kalff Katz & Franssen, expressed frustration at the government’s decision to dismiss a recent report that outlined the dangers of the tax hike.
The report, presented during the budget speech, warned that the increase could have an immediate negative impact on the market, potentially forcing some operators to exit or downsize their operations. For example, Holland Casino might be forced to reduce its retail operations or abandon its online gaming segment entirely.
“The current government appears to be deaf to these concerns. It views gambling as a ready source of additional taxation revenues,” Littler remarked, further underscoring the discontent within the industry.
Government’s Justification for the Tax Hike
Prime Minister Dick Schoof defended the tax increase, stating that the measure is intended to discourage gambling in the country.
He acknowledged that the tax hike might have been implemented earlier if not for the sports sector, which relies heavily on support from the gambling industry.
However, industry experts believe that the government’s approach might have unintended consequences.
Littler argued that rather than protecting consumers, the tax increase could hurt the regulated market and drive more players towards unregulated options.
A Glimmer of Hope for Revisions
Despite the tax hike being officially approved, industry consultant Willem van Oort expressed cautious optimism that there might still be an opportunity to revise the decision.
Speaking with iGB, van Oort suggested that the government could potentially lower the proposed tax rate from 37.8% to 34.2%, offering some relief to the sector.
He remains hopeful that ongoing discussions might lead to a more balanced outcome for all parties involved.
