The Dutch government has announced plans for a staggered rollout of a gambling tax hike in the Netherlands in order to minimise the impact on both operators and consumers. The tax increase, which is set to take effect in 2021, will see the rate for online gambling rise from 29% to 30.1%, while land-based gambling taxes will increase from 29% to 31.1%.
The decision to implement the tax hike in a staggered manner comes after concerns were raised by industry stakeholders about the potential negative effects of a sudden and substantial increase. The Dutch government hopes that by phasing in the higher tax rates over a period of time, operators will have more time to adjust their business models and mitigate any negative consequences.
In addition to the staggered rollout, the government also plans to introduce measures to help offset the impact of the tax hike on consumers. This includes potential changes to the way gambling tax is calculated and potential adjustments to the minimum payout percentage for online slot machines.
The Netherlands recently introduced a new gambling law that will see the market open up to international operators for the first time. This move is expected to bring in significant revenue for the government, with estimates suggesting that the online gambling market could generate around €800m in annual revenue.
Despite the potential benefits of the new gambling law, the government has faced criticism for its decision to raise taxes on operators. Some industry experts argue that the tax hike could stifle growth in the market and deter new entrants from applying for licenses.
However, the government remains optimistic that the staggered rollout of the tax increase will help to minimise any negative impact on the industry. By giving operators more time to adjust to the new tax rates, the government hopes to ensure a smooth transition to a more regulated and sustainable gambling market in the Netherlands.
