Dutch Law Firm Critiques the Gambling Tax Hike

A gambling law firm has criticized the Dutch government for ignoring the industry’s tax hike-related concerns. The Netherlands, for context, is considering a tax increase, which many believe would hurt the regulated market.

The Tax Changes Displeased the Industry

The tax increase was proposed earlier this year. The government expects to rake in hundreds of thousands of extra dollars via this measure.

However, the industry is not on board. Already dealing with the Netherlands’ decision to ban untargeted gambling ads and phase out sponsorships in the near future, regulated operators fear that the higher tax would hurt their businesses and render them unable to compete with the black market.

The tax hike was officially approved a few days ago, to licensed operators’ dismay. Despite the fierce opposition from companies within the sector, the government remained relentless and was called “deaf to the industry’s concerns” by gambling law firm Kalff Katz & Franssen.

The Industry Seems to Be “Deaf” to the Concerns

In an interview with iGB, Alan Littler, a representative of Kalff Katz & Franssen, said that the government seemed to be dismissive of a recent report, which highlighted the potential dangers of the gambling tax hike. The report was presented during the budget speech but did not discourage the government from proceeding with the tax hike.

According to Littler, the report emphasized that the tax changes would have immediate adverse effects on the market, forcing certain operators to seek alternative ways to make up for the losses or exit the market. According to the report, Holland Casino might have to reduce its shops or give up on its iGaming operations completely.

The current government appears to be deaf to these concerns, it views gambling as a ready source of additional taxation revenues.

Alan Littler

According to PM Dick Schoof, the Netherlands is looking to discourage gambling. He added that the tax hike would have been implemented earlier if not for the sports sector, which receives significant backing from the gambling industry.

While Schoof says the government seeks to protect consumers by discouraging gambling, Littler believes that the measure would actually achieve the contrary by hurting the regulated sector.

Industry consultant Willem van Oort told iGB that there might still be a chance to convince the industry to retract its plans. He is cautiously optimistic about the matter, believing that the government might opt to increase the gambling tax to 34.2% instead of 37.8%.