Netherlands to Increase Gambling Levy

The Dutch government has increased the gambling levy for online operators from 1.75 per cent to 1.95 per cent of gross gaming revenue (GGR).

The increase has been attributed to rising costs of regulation incurred by the gaming authority, Kansspelautoriteit (KSA), as the market prepares to go live on 1 October 2021.

However, 0.25 per cent of the charge will be contributed to a gambling harm prevention fund.

Slots, lotteries and land-based casinos will also see increases in levy contributions.

“Since its introduction on 1 April 2012, the gambling levy has not been indexed for price inflation and wage cost developments,” the Dutch government said in a statement.

“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.”

The KSA added: “This is not a pleasant message in a period where many companies are already struggling due to covid-19 prevention measures.”

Licence fees have also been amended, with many reduced. Lottery and casino operators will see processing fees reduced from €48,000 to €28,000. Although online operators will still pay €48,000.

The KOA came into effect on 1 April. KSA recently said it anticipates that 35 licences will be granted for online gambling ahead of 1 October.

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