Netherlands gambling levies to rise from October

The Netherlands’ gambling levies for online operators will rise by 11.4 per cent while licence fees will be dropped.

The Netherlands.- The Dutch government has announced that levies on online gambling revenue will rise by 11.4 per cent from October. The increase is to cover the national gambling regulator Kansspelautoriteit’s (KSA) increased costs due to the licensing of online gaming in the Netherlands.

KSA began taking Dutch igaming licence applications in April. The newly regulated market is due to go live on October 1, and the new levies will apply from the same date.

The levy on online gross gaming revenue will increase by 11.4 per cent, from 1.75 per cent to 1.95 per cent. The rate will remain in place for a decade, while 0.25 per cent of the levy will continue to go to the Netherlands’ addiction prevention fund.

There will also be a small rise in the levy rate on lotteries, slots and land-based casinos.

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

“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 into force of the KOA (Remote Gambling) Act. These costs are higher than was foreseen when that law had yet to be passed.”

Dutch licence fees will also change, with most seeing an immediate reduction. The processing fees for lottery and casino operators will be reduced from €48,000 to €28,000. The fees for online gambling operators will stay as they are at €48,000.

The Netherlands’ announcement comes shortly after the UK government approved a 55 per cent increase in Gambling Commission licence fees charged to gaming operators and suppliers licensed in Great Britain – also from October 1. Licence application fees in the UK will rise by 60 per cent.

See also: Dutch and British gambling regulators increase collaboration

Meanwhile, René Jansen, chairman of the KSA, and new chairman of the Gaming Regulators European Forum (GREF), has called for the reintroduction of the European Commission’s Expert Group on Online Gambling.