New Justice Secretary backs Dutch egaming regulation

Dutch egaming regulation has taken a big step forward with new Justice Secretary Klaas Dijkhoff giving his public backing to the proposed scheme in detailed responses to stakeholder questions.

A 176-page document signed-off by Dijkhoff, who replaced Fred Teeven in March, late last week described the government’s vision for egaming regulation and responded to dozens of queries submitted by stakeholders last year.

The topics addressed include feasibility and enforcement, administrative burdens and compliance, responsible gambling and taxation.

Dijkhoff said he hoped the document would remove the “remaining ambiguities and doubts of the various groups” and see the successful progress of the Gambling Act.

“I believe that the present Bill contains the basis for a tight, but also reasonable and balanced package of measures,” he wrote.

A crucial part of the response focused on the “level playing field” and Dijkhoff conceded that some foreign online operators may have a head start due to already being active in the Dutch market.

However, he said there was no indication one or a few operators had such a “dominant position” that competition from new entrants on this market would not be possible.

Asked whether those operating unlicensed in the Dutch market should be banned, Dijkhoff argued that this would not be in the interest of creating a competitive market and ensuring as much of the market as possible is brought onshore.

“A difference in treatment between the current licence holders and new market entrants will be at odds with the principle of equality,” he wrote, suggesting that no head start would be afforded to either.

Many stakeholders submitted questions related to taxation levels and in particular why land-based casinos would continue to be taxed at 29% when online operators would be subject to a 20% rate.

Dijkhoff said that a competitive tax was vital to ensure there was an attractive offer for Dutch customers and therefore the government achieves its goal of bringing 80% of the egaming market onshore.

“The market for remote gambling is a consumer-led market,” Dijkhoff wrote. “Players want to be able to play the desired game by them with an attractive pay-out percentage.

“It is easy for a player to a better alternative on the internet. It is therefore necessary that the future licensees a sufficiently attractive and wide range of games of chance on distance to direct players to create the legal offer.”

A large part of the document addressed fears over a rise in gambling addiction with an emphasis on operators’ responsibility to prevent “excessive” behaviour.