Poll results: 29% Dutch tax rate is unworkable

The newly formed Dutch coalition government should rethink its plans on how to tax operators in the country’s soon-to-be regulated dot.com egaming market, according to eGaming Review’s readers.

In this week’s poll we asked whether the 29% gross profits tax (GPT) rate mooted in a joint accord by party leaders Mark Rutte and Diederik Samson last week would allow the Dutch egaming market to flourish, or whether it would simply be too much for foreign operators to swallow.

Some 58% of readers said the proposed rate was too high, saying it would be too burdensome and would therefore struggle to attract private operators.

A further 28% said the industry and government will have to reach a compromise on how operators are taxed, while just 14% said that land-grab in the new Dutch dot.com market ““ which H2 Gambling Capital estimates could be worth €223m by 2015 ““ would be more important than securing a lower tax rate.

The coalition government vowed to “strongly regulate” online gambling before the end of its current term, however it is also clear that the 29% rate is not set in stone, with that draft legislation is set to be introduced for stakeholder consultation in early 2013.

The move by the government to regulate the industry has been a long time coming, with plans first surfacing in October 2010. Industry experts predict the regulation to be in line with the Danish licensing model, which began operating with great success earlier this year.