Netherlands hikes gambling levy rates

Gambling operators in the Netherlands will face a sharp rise in levies and fees, according to a Government announcement ahead of the launch of the online market from 1st October, with the figures set to last a decade.

The levy will be increase for all providers of games of chance, with the country citing an uptick in the costs incurred by the Kansspelautoriteit (KSA) gaming authority, related to its regulating of the new online market.

Gross gaming revenue paid for online gambling operators will rise from 1.75 per cent to 1.95 per cent, equating to a 11.4 per cent rise. Of this, 0.25 per cent of the charge will continue to be directed towards an addiction prevention fund.

Other types of operators, including lotteries, slots and land-based casinos will also see rises in their levy contributions, though their license processing fees will also be decreased, with immediate effect in most cases.

Lottery and casino operators will see their processing fees drop from €48,000 to €28,000, where online gambling operators will see their fees remain the same at €48,000.

“Since its introduction on 1st April 2012, the gambling levy has not been indexed for price inflation and wage cost developments”, the Dutch Government commented.

“This has the consequence that the levy amounts and levy percentages are no longer sufficient to cover the costs of the KSA in the context of supervision and enforcement.

“The Gambling Act stipulates that the KSA is financed by the sector. This in addition to supervision and enforcement, also applies to the development and implementation costs of the KSA in connection with the entry int force of the KOA [Remote Gambling] Act. These costs are higher than was foreseen when the law had yet to be passed”, it added.

The Dutch Remote Gambling Act came into effect on 1st April, and the market is expected to launch on 1st October.