The Senate of the Netherlands has been discussing a bill that proposes to regulate online gambling in the country. A vote has been scheduled to take place this week. The bill was passed by the lower house in 2016 and has been languishing for two years because other issues were given priority.
This article seeks to acquaint Dutch online casino players on various aspects of this important topic through the following sections.
- The existing laws concerning online gambling
- The key points in the proposed bill
- The expected steps forward if the bill is passed
- Comparison with the online gambling laws in the United Kingdom
Existing Dutch Online Gambling Laws
The key legislation covering gambling in the Netherlands is the Dutch Gambling Act of 1964 commonly referred to as the Wok. Under this Act only one licence for land based casino operations has been issued. This is to the Dutch state-owned Holland Casino. The Act does not cover online gambling at all. There is no provision to issue licenses and none are therefore issued. It is illegal to offer any form of online gambling in the Netherlands as of now.
But the fact is that Dutch players are gambling at hundreds of offshore operators generating revenue of over €800 million from online casino gaming and other online gambling verticals like poker and sports betting. However, it is not illegal for Dutch players to play at these sites. The players themselves will not face prosecution. In the absolute worst case they may lose their deposits if the sites are blocked. If you’re willing to take a risk then you can play at any of our recommended online casinos. They are regulated outside Holland by top notch agencies like the Malta Gaming Authority and the Government of Gibraltar.
The Dutch Remote Gaming Bill
From 2012, the Dutch Gaming Authority, commonly referred to as KSA, had the task of regulating gambling in the country. As a part of its efforts the Remote Gambling Bill for online gambling was prepared. Here it is important to point out that two reasons have been cited for this.
- Pressure from the European Union to bring a competitive and regulated online gambling structure in Holland on par with that prevalent in some other countries like the United Kingdom.
- The Dutch government sees the massive online gambling turnover as a revenue source that is presently going out of the country. Regulating online gambling will bring taxation and licensing revenue to the national exchequer.
The key points of the Remote Gambling Bill are as follows.
Procedure
- Interested online gaming operators will have to apply for a license.
- KSA would scrutinise applications and award a five-year license to deserving operators.
- Applicants based inside the European Economic Area would be given preference.
Taxation
- The main revenue would come from a 29% tax on gross gaming revenue.
- Another 1.5% would be levied to fund the activities of the KSA.
- 0.5% would be levied to create a Responsible Gambling fund to rehab players inflicted with problem gambling.
Other restrictions
- Limits have been proposed on marketing sites via non-pay TV channels.
- There are restrictions on promoting in-play wagers during sports broadcasts.
- Online gambling operators are to be prohibited from accepting wagers on any sports team with which they have a sponsorship deal.
The Way Forward
If the bill is passed by the Senate then the process of receiving and scrutinising applications can begin. Operators at present serving Dutch players through offshore regulators have expressed intent to become a part of the national regime.
Unfortunately, there is a strong move to exclude the operators presently functioning from overseas locations, also referred to as grey area operators, from the licensing process. If they are not altogether excluded, they are likely to face a cooling off period that may range from two years to five years. This was confirmed by Justice Minister Sander Dekker. This means that the best brands presently operating in Holland will not be given licenses.
- If they are prevented from operating in the regulated market, Dutch players will be deprived of the best brands.
- If they continue to operate from offshore locations, then KSA may be unsuccessful in channelizing Dutch players to licensed operators.
In either event, the system as a whole will lose out. There are even whispered rumours that the Dutch government may create a single state owned monopoly to offer online gambling services, as it has done with land based gambling.
Comparisons with the United Kingdom
The United Kingdom implemented a regulated online gambling regime about a decade ago. But it went about the business in a completely different way. It took the offshore operators then functioning in Britain on board. The United Kingdom Gambling Commission insisted that will have to apply for fresh licenses but was sensitive to the concerns these operators faced and tried to find mutually acceptable solutions in an amicable manner.
Today the United Kingdom Gambling Commission is regarded as one of the strictest regulators. It has imposed strict practices to be followed for prevention of underage gambling and problem gambling. Advertisements deemed unsuitable are immediately acted upon. Bonus and promotion offers that do not meet its standards of fairness and transparency have to be retracted. Hefty punishments are imposed on defaulters.
This has created a win-win situation for everybody.
- The British players are getting products from the best online gaming operators in a favourable environment.
- The online gaming operators are benefitting from players moving to them from sites that are not licensed in Britain.
- The British government is getting additional tax revenues in the exchequer.
When one compares the Dutch and British scenarios it is evident that the Dutch absurdities are not likely to really succeed unless corrections are made before the legislation is passed.
