Dutch land-based operators lodge complaint against online tax rate

The European Amusement and Gaming Federation (EUROMAT) has lodged a formal complaint with the European Commission against proposed differentiated tax rates between land-based and online operators in the Dutch Remote Gaming Bill.

The land-based gaming trade association said it would “take a stand” against the upcoming legislation which it claims violates EU law and constitutes state aid as online operators are taxed at a lower rate.

Under current proposals online gambling companies operating in the regulated Dutch market will be subject to a 20% tax rate compared to the 29% currently paid by land-based gaming establishments.

“EUROMAT is taking a stand against a national policy decision which we believe is non-compliant with European law and is not in the interests of European consumers or our members,” EUROMAT secretary general, Kieran O’Keeffe, said.

“Europe’s land-based private sector is united in its opposition to a proposal which unfairly discriminates against bricks and mortar businesses with no evidence to suggest that it will fulfil the intended objectives,” he added.

The complaint follows a similar move by the Danish land-based gambling sector which filed a complaint to the EU in December 2011 challenging the European Commission’s decision to back a lower rate of taxation for online operators.

Denmark’s Royal Scandinavian Casino also claimed the differentiated tax rate constituted state aid but the case was dismissed by the General Court of the European in September 2014.

Maarten Haijer, general secretary of the European Gaming and Betting Association (EGBA), told eGaming Review this morning that he believed the EU would make the same ruling in this case.

“The Dutch draft regulation has the same public policy objectives as the Danish regulation and we are confident that the proposed tax regime for online gambling in the Netherlands is in compliance with EU State aid rules,” he added.