Dutch egaming bill faces land-based legal challenge

Domestic land-based gambling firms in the Netherlands are set to mount a legal challenge to the country’s draft gambling bill, threatening the future of the proposed 20% online tax rate.

Owners of casinos and gambling halls in the country are requesting changes are made to the bill ahead of its passing into law, specifically relating to its tiered tax tariff and responsible gambling initiatives.

Kansspelautoriteit chairman Jan Suyver confirmed to eGaming Review this morning that the regulator was aware of the legal challenge, but would not comment further.

Meanwhile Willem van Oort, founder of the Gaming in Holland conference, said he expected more challenges to the Bill in the coming months.

“This is the first outcome of the new set of legislations and I am expecting other parts of the legislation ““ specifically lotteries ““ to be challenged as well,” van Oort said.

In an interview with Dutch radio station BNR Bas Jongmans, gaming attorney at Gaming Legal, said Dutch secretary of state Fred Teeven had “completely disregarded” warnings a tiered tax rate would create an imbalance in the Dutch market.

“That is teeming with arrogance and business owners cannot leave it at that,” Jongmans said.

Opposition to the prospective Dutch online tax rate of 20% – lower than the 29% land-based establishments are taxed at ““ first emerged last month after Labour MP Mei Li Vos threatened to derail the process if a single tax rate of 29% was not agreed upon.

Responsible gambling measures included in the Bill have also raised the ire of operators who believe they will be too expensive for smaller domestic businesses to implement, with Jongmans stating that it will cost domestic operators €50m to comply.

The legal challenge follows criticism published by the country’s senior advisory body the Council of State, which last week urged a rethink over several facets of the bill.