Dutch draft legislation proposes 20% GPT rate
Consultation process for proposed regulations will run until 21 July " players taxed 29% on winnings from unlicensed sites
The Netherlands Gaming Authority (Kansspelautoriteit) has published the draft legislation to regulate the country’s online gambling industry, with a view to opening the market on 1 January 2015.
The bill was described as “a modernisation of gambling policy” and will introduce a 20% tax on gross profit, privatise monopoly operator Holland Casino and abolish the existing sports betting monopoly.
The bill, which has been released to industry stakeholders for consultation until 21 July, includes a tenet which requires each applicant to set up a Dutch subsidiary business in order to secure a five-year approval. Confirmation of the licence is also dependent on the Kansspelautoriteit auditing the company’s systems within six months to a year after of the operator receiving approval.
In order to begin the licensing process operators must pay a non-refundable application fee of between 35,000 and 50,000, while an additional 1.5% monthly levy (based on gross game result) must be paid to the regulator. This will be used to finance the gaming authority as well as contributing to anti-addiction funds, sports organisations and charities, as well as help pay a management fee to the Dutch Ministry of Security and Justice.
In order to further combat addiction strict guidelines for player protection have been proposed, including player monitoring to identify signs of problem gambling, with operators required to avoid marketing to these players. Provisions for voluntary exclusion, enforced exclusion, use of social security numbers for background checks and face-to-face interviews to determine whether people at risk have also been included.
Legislation even goes as far as to make moves to reduce the appeal of illegal operators by enforcing a 29% tax rate on players’ winnings from unlicensed sites.
The need to modernise the country’s online gambling market was described as a “necessity” due to the fact that 96% of those aged 12-75 have access to the internet, with 60% of the same group also using 3G via smartphones. With betting sites readily accessible, the bill explained, around 275,500 players were estimated to gamble online according to a 2011 survey.
After initial plans to re-regulate the Dutch egaming industry first surfaced in 2010, eGaming Review exclusively revealed that the country’s Ministry of Justice was to introduce draft legislation in October last year. Later that month the newly-formed government reiterated this pledge, adding that it would also look to privatise Holland Casino in the same announcement.
Despite the monopoly operator issuing a request for proposals (RFP) for a gaming supplier in February “ a move which suggested progress was being made on plans to privatise the business “ the RFP was discontinued in April 2013. This was blamed on all the bidders failing to meet the criteria set out by Holland Casino.
However, the operator has pledged to launch an egaming offering by 2015 at the earliest, describing it as “necessary” to improve its financial performance.