As reported by CasinoNieuws.nl, the Netherlands is set to alter its gambling tax rate from 30.5% to 37.8%, should the latest coalition agreement be implemented.

This change is expected to provide the state treasury with an additional €202 million (£173.3m/$219.6m) annually in gambling tax contributions. The agreement involves the PVV, VVD, NSC, and BBB parties.

In November, seven political parties announced their goal to generate an additional €200 million to €400 million in state contributions through an increased gambling tax. The coalition agreement, titled “Hope, Courage and Pride,” is scheduled to be presented today (16 May).

Tax Increase Amid Online Slot Ban Controversy

The proposal to raise the gambling tax comes on the heels of the Netherlands’ house of representatives voting to ban online gambling advertising and “high-risk” gambling, which includes online slots. The house voted to ban all targeted advertising, having already prohibited untargeted advertising. This new ban, effective from July 2023, encompasses mass advertising through television, radio, and sports sponsorships.

Additionally, the house voted for a ban on online slots due to concerns over the lack of player control in such games. These motions were put forward by Socialist party MP Michiel van Nispen. Although the bans have passed a house vote, the Netherlands’ minister for legal protection, Franc Weerwind, will review the law and decide whether to approve the changes.

Industry Opposition to Proposed Bans

The proposed changes have faced significant opposition from the industry. The Netherlands Online Gambling Association (NOGA) argues that these bans would push players towards the black market. NOGA described the proposed changes as “thoughtless and irresponsible,” with its director, Peter-Paul de Goeij, expressing concerns that the motions are based on inaccurate data.

“A majority in the house of representatives is taking an expensive gamble with online players who are now consciously opting for the legal offer,” said De Goeij. “If we soon find that politicians have made the wrong decisions too hastily, the house will be responsible for the negative consequences.”

Implications for the Dutch Gambling Market

The increased tax rate and the new regulations reflect the Dutch government’s attempt to regulate the gambling market more stringently. While the tax increase aims to boost state revenue, the advertising and slot bans are intended to mitigate the risks associated with gambling. However, the controversy and opposition suggest that the road to implementing these changes may be fraught with challenges.

As the situation develops, the Dutch gambling industry will closely watch the minister for legal protection’s decisions, which will significantly impact operators and players alike. The balance between regulation and maintaining a healthy market will be crucial for the future of the Dutch gambling landscape.

Source: “Netherlands coalition agreement proposes increased gambling tax of 37.8%”. igamingbusiness.com. May 16, 2024.

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A brewing clash between proponents and opponents of a proposed casino at the iconic Fontainebleau Resort in Miami Beach is expected to take center stage in Tallahassee next week, as state lawmakers gear up for a heated debate.

Opposition Mounts Against Fontainebleau Casino Plans in South Florida

A coalition of influential South Florida business figures, including billionaire auto magnate Norman Braman and developer Armando Codina, is spearheading a vigorous lobbying effort aimed at derailing legislation that would pave the way for a Las Vegas-style casino at the Fontainebleau, reported the Miami Herald. The group, joined by Miami Beach city officials and residents, is vehemently opposed to the expansion of casino gambling in the area.

Braman, echoing the sentiments of many in the community, emphasized in an interview that they did not want casino gambling there, stating it was just that simple. 

Miami Beach Mayor Steven Meiner underscored the unity among local leaders, expressing his belief that they all felt very strongly about the matter and were united on it.

The contentious proposal, embodied in Senate Bill 1054 and House Bill 1127, is slated for its inaugural hearing before state lawmakers on February 5. While the Senate Regulated Industries Committee has confirmed its agenda, House Republican leaders remain tight-lipped about the bill’s fate.

The debate has drawn high-profile figures into the fray, including billionaire hedge funder Ken Griffin, who penned a scathing op-ed condemning the proposed legislation. Griffin warned of the adverse effects of casino expansion, citing research linking it to gambling addiction, increased crime rates, and declining property values.

Meanwhile, the proposal’s sponsor, state Rep. Alex Rizo, has faced scrutiny for his ties to Jeff Soffer, the billionaire owner of the Fontainebleau. Soffer, who has long sought to establish a casino at the resort, has reportedly funneled significant sums into political contributions, raising concerns about undue influence.

Opponents of the casino plan have found a powerful ally in Griffin, whose vocal opposition adds weight to their cause. Griffin’s staunch stance against the legislation reflects a broader sentiment among Miami-Dade residents and lawmakers, who view the proposed casino as a threat to their community’s well-being.

Sen. Shevrin Jones, representing West Park, emphasized the need to respect the will of the people and urged legislators to reject the casino proposal. Similarly, Miami Republicans, including Sen. Bryan Avila and Ileana Garcia, have voiced reservations about the initiative, signaling potential roadblocks ahead.

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In the 1950s, a federal excise tax on sports wagers was implemented as a method to fight against illegal gambling. The tax, which is 0.0025% of every sports wager has remained in place since, despite efforts of lawmakers against it. While at the time, only Nevada was affected by the tax, this is not the case at present.

Now, a newly introduced legislation, supported by Sen. Richard Blumenthal and Rep. Andrea Salinas, proposes to use the money raised from the federal excise tax on sports betting to develop a new fund that will help with research, treatment and prevention of gambling addiction.

Per the new proposal, labeled as the “Gambling Addiction, Recovery, Investment, and Treatment Act,” some 50% of the tax, which is often referred to as the handle tax, would be used for funding the initiative.

As announced by the Nevada Independent, Salinas and Blumenthal released a joint statement, highlighting the importance of dedicating more funds toward research, treatment and prevention of gambling harm across the country. “The growing legalization of sports and online betting, paired with the ability to place bets from your phone whenever you want have created a perfect storm for gambling addiction,” explained Blumenthal. Additionally, he said: “Dedicated federal resources to tackle problem gambling head-on will provide much-needed support, resources and treatment for those suffering from gambling addiction.”

According to Salinas and Blumenthal, the new proposal is supported by the National Council on Problem Gambling (NCPG). The duo confirmed that the proposed bill also enjoys approval from problem gambling councils in Connecticut and Oregon.

Not Everyone Agrees with the Proposed Handle Tax Bill

The proposed legislation about the handle tax surely surprised Rep. Dina Titus, one of the long-term opponents of the tax. For 10 years, she has been trying to repeal the federal excise tax on sports betting, deeming it “redundant.” On Friday, Titus supported her position that the federal excise tax isn’t needed considering that states that have legalized sports betting already dedicate resources toward fighting problem gambling.

“Nearly every tax dollar earmarked for problem gambling services comes from casino gaming taxes, including new legal sports betting and iGaming markets.“

Chris Cylke, SVP of the American Gaming Association

Chris Cylke, the American Gaming Association’s senior vice president, shared Rep. Titus’ position. He explained that both legal online gambling and sports betting activities across the country raise money for problem gambling. Additionally, Cylke warned that amid the expansion of legal gambling across the country, the “antiquated” federal excise tax represents a disadvantage for licensed operators and favors the illegal gambling sector, where no license fees or taxes are paid any way.

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Amid the fervent competition to secure licenses for New York City’s inaugural casinos, developers are undertaking unconventional strategies to garner local support, but this turns out to be a move sparking parental discontent.

This summer, a basketball camp held at Coney Island’s Kaiser Park was emblazoned with the logo of “The Coney”, a proposed casino project seeking to establish roots in the neighborhood, reported the New York Times. The basketball clinic, organized by Brooklyn USA Basketball, is just one example of the lengths to which casino operators are going to curry favor with local communities as they vie for coveted licenses.

While some parents decry the casinos for using their kids to advance a potentially detrimental agenda, others welcome the funding that enables enhanced sports programs and activities. The divisive issue has fueled heated debates on social media, bringing the ethics of casino-funded youth programs into the spotlight. The discussions have prompted deeper contemplation on the roles of gaming corporations within communities and the responsibilities they carry when engaging with the youth.

The controversy underlines the high stakes in the race for the three casino licenses in the New York City area. However, these battles extend beyond the boardrooms and into local communities, where concerns over the impact on children and ethics are in focus.

Silverstein and Greenwood Join the Race for New York’s Casino Licenses

Legal experts have noted that this grey area in advertising to minors continues to challenge states, despite measures in place to prevent casino operators from targeting young audiences. New York’s gaming regulators, for instance, have a pending rule proposal that would forbid marketing sports betting to minors, encompassing logos on clothing aimed at those under 21.

Besides The Coney, there are also other projects fighting for the coveted New York licenses. At the end of June, Silverstein Properties and Greenwood Gaming and Entertainment joined forces to vie for a commercial casino license in downstate New York. Their proposed “Avenir” casino hotel, situated in Manhattan’s far West Side, aims to tap into the area’s high demand for entertainment and gaming options. The collaboration faces tough competition from other casino operators, with factors like financial stability and project design influencing the regulatory evaluation process. The developers must also address community concerns, as seen in Coney Island where residents are protesting a Boardwalk casino bid due to crime and pollution fears.

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Gov. Kathy Hochul of New York has stressed yet again her detachment from the ongoing negotiations between her office and the Seneca Nation concerning a potential casino in the Rochester area. However, she emphasized that she is not directly participating in the negotiations, the timing decisions, or engaging in discussions with external individuals regarding this matter at the moment.

Local Leaders Surprised by Casino Deal Talks Involving Gov. Hochul’s Office

Speaking during the grand reopening ceremony at The Strong National Museum of Play in Rochester, Gov. Hochul clarified that she had recused herself from the negotiations and would be informed of the details alongside the public, reported 13WHAM ABC.

The negotiations have sparked controversy and raised eyebrows among local leaders and lawmakers, who were surprised to learn about the talks involving a casino deal. The governor’s office has been handling the compact talks on behalf of Gov. Hochul due to her recusal from matters related to Delaware North, the company where her husband is employed as the senior vice president and general counsel.

The previous announcement of a new tribal gaming agreement between the governor’s office and the Seneca Nation, which potentially included a Las Vegas-style resort casino in Rochester, sparked criticism for not involving relevant state lawmakers and local officials in the negotiations.

Governor Hochul Allegedly Stalling Compact Renewal for Corporate Benefit

Following the refusal of the New York Assembly to pass a statute authorizing Gov. Hochul to sign the Seneca contract, the Seneca Nation’s President, Rickey Armstrong Sr., accused the governor of deliberately stalling the compact renewal, which could benefit Delaware North.

Despite the setback, Gov. Hochul assured that discussions with the Seneca Nation are still ongoing. She emphasized her commitment to seeking a good outcome for all parties involved and working with an outstanding team on the matter.

As negotiations continue, lawmakers from Rochester have expressed their concerns regarding the potential impact of a casino project in the area. The Greater Rochester Majority Delegation has been engaging with all relevant parties, including the Governor’s office, local stakeholders, and the Mayor’s office, to ensure that any agreement between the Seneca Nation and New York State is transparent and well-informed.

In May, the Seneca Nation sought public support for a fair gaming compact as their current agreement with New York State is set to expire in December. They organized community support events throughout May, encouraging people to sign letters to state leaders, urging them to expedite the negotiation process and sign a new deal before the end of the State Legislature session on June 8. The Nation emphasizes its positive economic impact in the region, with three casino properties employing around 3,000 people and providing significant indirect support to the local economy.

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