Netherlands lawmaker have rejected an amendment proposed to bring forward a planned increased in the gambling tax rate. The Dutch government had introduced an amendment in October to increase the tax to 37.8 percent from the beginning of 2025.
Earlier, the proposal was to increase the gambling tax in stages. The gambling tax was to be hiked from the current rate of 30.5 per cent to 34.2 per cent on 1 January 2025, and later to 37.8 percent in January 2026.
Therefore, if the amendment was passed, it would mean that the tax would be hiked in one go. It was rejected by the House of Representatives on the advice of Minister of Finance Eelco Heinen.
This followed the publication of a research which found that a higher tax rate would negatively impact charity and sports lotteries. It would potentially lead to an estimated €15 million fall in annual contributions to sport and a €7 million fall in distributions to charities.
Different tax rates
However, the Dutch lawmakers have voted in favour of another amendment which calls to investigate options for a differentiated tax rate for various gambling activities. This means that the government is calling for options in the Spring budget to allow land-based casinos and online gambling to be taxed at a different rate than charitable gaming and sports lotteries. Charitable gaming and sports lotteries would be taxed at a lower rate than land-based casinos and online gambling.
In addition, the lawmakers have voted in favour of a motion calling for tighter control over online gambling in Curaçao. The motion acknowledges the right of Curaçao to regulate gambling. It also showcases the risk of money laundering and crime due to ineffective regulation.
While the regulatory regime is being updated, it calls on the government to engage with Curaçao to see how the rules and supervision of the online gambling sector can be tightened.
This would include measures to clamp down on money laundering, prevent “further intertwining with the underworld” and measures to promote the integrity of public administration in the region, results of which will be reported to the House of Representatives.
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