It seems like quite a few countries are deciding to bring online casinos under the radar of late. The latest to join the bandwagon are the Dutch. The online casinos that have been entertaining Dutch players for a while now, might have to pay a higher gambling tax. This is happening because the Remote Gambling Bill is being kicked into action of late by the Dutch coalition.
It is not now that the Dutch authorities started trying to regulate the online gambling environment, they have been at it for a while now. Only that they were slow at it. And that was so because of the quest to find a tax rate that did justice both to land-based operators as well as online operators. These were the different kinds of possibilities they wanted to contemplate. It does not seem that the new tax proposal is any sort of a compromise and that is so because no kind of distinction is being made between online casinos and the actual casinos. Online casinos can now be be taxed at 29%, which is just as much as their brick-and-mortar counterparts.
A few changes to the Remote Gaming Bill have been made by the members of the ruling parliamentary coalition. One of these changes is the imposition of a uniform tax for gambling. This action will not have any consequence whatsoever on gambling operators that are land-based. Example of the same will be the industry leading Holland Casino, which will remain unchanged whereas on the other hand, the charges levied on online casinos would be much more. For they were supposed to pay a tax of only 20% at the outset.
This poses a potential setback for Dutch players because this tax of only 20% was to egg them on and into applying for a licence. The main folks to benefit from this are the punters of playing at Dutch licensed casinos for now they would get to enjoy a secure environment. The new tax, which is 29% tax will have a damaging effect and will aid only those internationally licensed operators who are competitive when it comes to cost.
The news comes as a shock to many people, mostly the online casinos with great businesses that have been catering to Dutch player for quite a while now. The same sent shockwaves even among those who are interested in applying for a license. However the legislators are insisting and assuring the companies affected that according to their calculations, the tax rate will be reduced to 25% for all online casinos, three years from now.
We should be able to see in practice that soon enough this will have a two-pronged effect by boosting gambling revenue and bring more money to state coffers. It is unlikely that Tweede Kamer will schedule a vote for the first quarter of 2016 as was initially expected. These changes will put some breaks in the development of regulating the online industry.