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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The gambling industry is very massive, and with the potential harm gambling can cause, it needs to be regulated. The way gambling is regulated in individual regions is quite different. Some countries use a central governing agency to enforce gambling laws, while others give each state the freedom to regulate gambling as it deems fit.

In today’s article, we focus on gambling laws in Belgium and the Netherlands. Previously, gambling online in the Netherlands and Belgium was prohibited. But with the passage of the Remote Gambling Act (KOA), players can now place legal sports bets and play casino games over the internet. But with this freedom comes other restrictions, which we will shed more light on in this article.

Changes Belgium and Netherlands made to their gambling laws

The gambling laws in Belgium and the Netherlands were tightened recently. These changes aim to promote responsible gambling. Regulators want to create a safe space for players and, at the same time, reduce the number of youths involved in gambling. These changes imply that operators will likely look for new markets where the gambling laws are not so demanding. But what are these laws, and how do they impact the operators in the regions?

Universal loss limit

One of the changes made to the gambling laws in these regions is the push for a universal loss limit. This change was reportedly partitioned by Bikker in the Netherlands. This partition aims to protect players who may be struggling with problem gambling. Gambling can be addictive, and cause players to make irrational decisions.

As a result, the universal loss limit aims to reduce the deposit limits allowed to be accepted by all licensed operators. This change was introduced on the 13^th of February, 2024, and was announced by the Ministry of Justice & Security. With this new gambling law, players won’t be allowed to make an affordability check.

Financial risk checks

Before voting for the universal loss limit proposal, Franc Weerwind, the Minister for Legal Protections, rejected ChristenUnie’s (CU’s) mandate. Weerwind argued that there’s no need for a universal loss limit since a financial risk check was already incorporated in the approved and imminent amendments.

Weerwind further went on to say rather than a universal loss limit, compulsory financial risk checks for players’ accounts that are more than €350 or equivalent in spending will be more beneficial to the state, players, and operators. The Minister for Legal Protection whose job is to oversee KOA reforms, argued a €150 spending restriction will be imposed on gambling accounts of customers under 24.

Stricter financial penalties

Another change we can expect to see in gambling is stricter financial penalties. This amendment aims to create a safe space for players to gamble. A former member of the House of Representatives, Michiel Van Nispan of the Netherlands for the Socialist Party (SC) proposed a stricter financial penalty.

Van Nispan argued that with stricter financial penalties in place, gambling operators would be more cautious not to violate gambling laws. Amongst the penalties, Van Nispan suggested a fine of 10% of turnover for gambling companies that violate the KOA regulations. The former member of the House of Rep also suggested revoking the license of operators who fail to provide satisfactory player protection. Up to 102 MPs supported Van Nispan’s mandates, and it was passed.

Belgium increases gambling age

In Belgium, the official gambling, whether online or offline, was previously 18. However, the new gambling legislation has increased the legal gambling age to 21 and it has been approved by the Chamber of Deputies. The aim of increasing the legal age to gamble is to reduce the number of youths involved in any form of gambling.

Regulators believe that by reducing the number of youths involved in gambling, they will be more likely to get involved in more productive acts that will contribute to the development of society. Also, increasing the legal gambling age will help reduce the cases of gambling problems as it protects minors from the potential harms of gambling.

Online gambling advertising ban

Another of the three motions proposed by the CDA MP Derk Bosswijk is the call for a blanket ban on gambling advertising. However, this proposal was rejected as it fell short by 6 votes of the required 76-vote majority. Nevertheless, the Dutch minister thought of the proposal as useful and maintained that overreaching player limits must be included in the KOA Acts going forward.

Although Belgium’s National Lottery will be exempted from the ban. Also, online operators in the Western European country are prohibited from offering more than one type of gambling.

Conclusion

In summary, the aim of these new gambling laws in Belgium and the Netherlands is to tighten responsible gambling. Regulators want to provide a safe space for gamblers, and also reduce the number of youths involved in gambling.

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Finnplay, the Scandinavian platform provider for the iGaming industry, has announced the launch of two brand new mobile applications for online casinos in Hungary and the Netherlands.

The Dutch application was made for Kansino.nl, while the Hungarian mobile app was executed by Finnplay for Vegas.hu. The supplier has plenty of experience in multiple jurisdictions and possesses the technical expertise to perform such a simultaneous launch of two different mobile applications.

Finnplay prides itself on performing native application development both for Android and iOS platforms, allowing its online casino operator partners to capitalize on the accentuated growth of the mobile gaming market.

Both applications were soft-launched over the summer, allowing both Kansino.nl and Vegas.hu to leverage the advantages of the mobile platform while supporting their expansion goals on this segment of the market.

Game-Changing Launches

Speaking about the two application launches, Jaakko Soininen, Managing Director of Finnplay, described them as “game-changing” for the Dutch and Hungarian markets and added that the event also underlines “Finnplay’s stature as an iGaming powerhouse.”

The Finnplay executive also added that the double launch proves that his company is perfectly capable of operating “seamlessly across diverse markets and regulatory landscapes.”

Dr Egresits Csaba, Online Director at LVC Diamond, the company that operates Vegas.hu, described the mobile application delivered by Finnplay as “cutting-edge” and added that it gives the operator “the ideal platform” to launch its sportsbook offering “It’s been a pleasure working closely with Finnplay and we have the utmost confidence in the tech to ensure we continue to grow our business,” Dr Egresits Csaba also added.

Daphne Xerri, Product and CX Director at Playnorth, the company that operates Kansino.nl, underlined the importance of delivering players “the best possible experience” both on desktop computers and mobile devices. “Finnplay has created the perfect app that guarantees a seamless experience across all formats,” Daphne Xerri concluded.

Founded in 2008, Finnplay is an iGaming provider based in Finland, focusing on delivering platform technology and services for online casinos and sports betting websites. The company’s flagship product is the Titan casino and sportsbook platform, which includes integrations for online casino games and payment solutions from other third-party providers.

The platform is fully compliant with several regulated jurisdictions from all around the world, including Mexico, Sweden, Estonia, Lithuania, the United Kingdom, the Netherlands, Romania, Denmark, Belgium, Bulgaria, Malta, and Hungary.

Source: “Finnplay Simultaneously Releases Mobile Apps for Hungarian and Dutch Markets“. EuropeanGaming. November 30, 2023.

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The court’s decision stems from a change in Dutch gambling laws in October 2021, legalizing online gambling, which has prompted individuals who lost substantial amounts of money before this date to pursue legal action, claiming their losses were unlawful. Unibet has expressed its intention to object to the ruling, opening the case for reexamination at a later date.

The Company Allegedly Operated without Permission

According to the court, Unibet must repay €93,000 ($99,902) to one gambler, while another company, whose identity remains undisclosed, was ordered to refund an amount of €124,000 ($133,203). These rulings were classified as default judgments, indicating that the defendants failed to respond. However, a Unibet representative noted that the company’s lack of response was due to human error and it would seek its legal rights.

Lawyer Benzi Loonstein, representing several former gamblers, including the two in these cases, noted that his clients were happy with the court’s ruling despite expecting a continued legal battle. The judges in both cases agreed with his arguments, indicating that Unibet may face a significant challenge in contesting this decision.

Simply put, if a company acts contrary to the law, it is not entitled to the money earned.

Lawyer Benzi Loonstein

The Netherlands is not alone in addressing claims regarding similar losses. Similar lawsuits, with a success rate of nearly 100%, have been conducted in Germany and Austria in recent years. Tens of millions of euros have already been recovered from gambling companies in almost 7,000 cases, with the argument being that companies acting against the law are not entitled to profits from such activities.

Unibet Faces Rising Pressures

An unsuccessful appeal by Unibet could cause significant long-term problems for the operator as more clients attempt to seek compensation in court. Given the successful track record of other such attempts in high-profile European jurisdictions, Unibet’s legal team will be hard-pressed to ensure success. This development closely follows the company’s ongoing issues in other European markets amidst increasing regulatory pressures.

September saw Kindred, the company behind Unibet, withdraw from Norway after a costly and protracted legal battle. The court claimed the operator had been operating illegally amidst the country’s intensifying efforts to regulate its gambling market. This development dealt a significant blow to Kindred’s European ambitions, and the new setbacks in the Netherlands have undermined its foothold in another high-profile jurisdiction.

The recent rise in refund claims has raised significant concerns in Malta, which is home to many casinos, including Unibet. The region revised its gambling law in June with Bill 55, which allows gambling companies to disregard foreign judgments when gamblers seek refunds, safeguarding against such demands. The European Commission is investigating this change in law, which goes against EU regulations.

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Taxation of retail and online gambling provides a vital stream of revenue for countries across the globe. Currently, there are strict rules regulating the gambling sector in the Netherlands and licensed operators in the country are subject to a 29.5% gambling tax. Now, a new proposal seeks to change the taxation of gambling for operators in the country, calling for an increase.

The proposal was submitted Tuesday by MPs Silvio Erkens and Chris Stoffer and it comes at a time when the Dutch government proposed a drastic increase in the levy applicable for alcohol. The government recently hinted at plans for increasing the excise duty applicable for alcoholic beverages, such as wine, beer and others, by 16.3%.

However, Erkens and Stoffer identified the potential negative impact of such an increase, claiming that it may have a significant economic impact on regions near the country’s borders. The duo outlined that people living in such regions may try to avoid the higher excise duty on alcoholic beverages by buying them from countries nearby.

To cushion the potential negative impact, of an increase in the excise duty on alcohol, the MPs submitted a proposal that calls for the increase to be in half. This would otherwise mean that the excise duty on alcohol would be increased by only 8% and to compensate for the tax revenue, Stoffer and Erkens called for an increase in gambling tax.

Increasing the Gambling Tax by 1%

Introducing half of the excise duty on alcohol is estimated to cost approximately €74 million ($78.3 million) in tax revenue. Within their proposal, the two MPs sought to fill in the gap created by the decrease in the revenue from alcohol by implementing a 1% increase in the tax rate applicable to gambling operators. This would effectively increase the tax rate from 29.5% to 30.5%.

In their proposal, Erkens and Stoffer highlighted the recent increase in the popularity of online gambling activities. Ideally, the duo sought to only increase the gambling tax applicable to online gambling operators.

“Ideally, the increase in the gambling tax would only have resulted in a heavier taxation of online gambling. However, the gambling tax is currently not differentiated with regard to different forms of gambling, which means that an increase cannot yet be focused on this group,“

reads the proposed change submitted by MPs Silvio Erkens and Chris Stoffer

However, under the existing regulations, there’s no separation between online gambling activities and land-based activities. In other words, if the proposal of the two MPs is implemented, the increase would apply to all forms of gambling in the Netherlands. This would be the case unless further changes and provisions are implemented.

If the Dutch government implements the change and increases the tax by 1%, an estimated €26 million ($27.5 million) in tax revenue is expected to be generated. The duo’s proposal also calls for an increase in the excise duty on tobacco as well, in addition to the gambling tax.

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Sports betting technology supplier Kambi Group announced a new important long-term agreement Friday. The company revealed that it joined forces with the fast-growing gambling operator in the Netherlands, 711. Under the terms of the new collaboration, the renowned sports betting platform and technology supplier agreed to power the operator’s sportsbook.

Thanks to the latest long-term deal, 711 will gain access to Kambi’s market-leading complete sportsbook solution. This includes the company’s AI-powered trading products and award-winning Bet Builder solution.

Recently, 711 has been enjoying strong growth within the regulated gambling market in the Netherlands. The company holds a license for online gambling in the country and has steadily increased its customer base since its entry last year. Considering the latest deal with Kambi, the fast-growing online casino operator plans to secure an extension to its license, allowing it to offer sports betting services.

To start offering such services, 711 needs to secure approval from the gambling regulator in the Netherlands, Kansspelautoriteit (KSA). Once this happens, the fast-growing operator anticipates leveraging its established brand sponsorship deals with leading Dutch teams, including FC Emmen, Telstar and Excelsior Rotterdam.

The deal with 711 comes after earlier this month, Kambi was selected as sportsbook technology provider for Svenska Spel, a leading Swedish gambling operator. Under the terms of that deal, the company agreed to power Svenska Spel’s online and retail sportsbook, delivering its cutting-edge technology.

The Collaboration Brings Excitement to 711

Gilles de Backer, 711’s COO, spoke about the company’s growth within the online gambling sector since its launch in the Netherlands last year. He revealed that expanding into the sports betting vertical was identified as an important next step for 711. Finally, 711’s COO pointed out: “By partnering with a leading sportsbook provider like Kambi, we are excited to be in a position to provide our growing customer base with a best-in-class product and exciting sports betting experiences.”

“711 online casino has achieved strong growth since we debuted in the Netherlands last year and it became clear that sports betting would be an important next step in the brand’s journey.“

Gilles de Backer, COO of 711

Kristian Nylén, Kambi’s co-founder and CEO added that the company is thrilled to deliver its services and power 711’s sportsbook in the Netherlands. He added that the latest deal reaffirms Kambi’s position as a leading sportsbook technology provider in one of the important markets on the Old Continent. Finally, Nylén predicted that its technology would supercharge 711’s sportsbook and help them achieve success.

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The award-winning digital business-to-business (B2B) platform and service provider, catering to the online gambling sector, Shape Games, announced a new partnership with the Dutch online sportsbook, casino and Entain Group-owned operator, BetCity. The duo joined forces earlier this week in an effort to deliver thrilling experiences for BetCity’s customers in the Netherlands.

Under the terms of the new collaboration, Shape Games agreed to power the development and launch of BetCity’s new native mobile applications. Those applications are going to be available for Android, as well as iOS, and are expected to elevate the experience for sports betting and online casino customers.

Per the new agreement, BetCity’s new applications will leverage the innovative and engaging technology provided by Shape Games. Ultimately, the new partnership is expected to deliver thrilling and engaging options not only for sports bettors but for users that like online casino gambling.

BetCity Is Delighted to Join Forces with Shape Games

Léon Voogt, BetCity’s product director, shared his excitement about the new collaboration. He pointed out that it is thrilling to see the brand’s application unite iGaming and sports betting options. “This made the development process a challenge, but with Shape Games, we found an excellent partner who helped us bring this vision to life,” added Voogt. Finally, he praised Shape Games for their innovative technology and predicted that the collaboration will bring benefits to BetCity and the company’s clients.

“We are excited to finally launch our app into the wider world. An app has been on our wish list at BetCity right from the start, and we’re thrilled that it’s now complete! It was important for us to be able to offer our entire product portfolio in one app, including a sportsbook, casino, and live casino – all in one place.“

Léon Voogt, product director at BetCity

In October 2021, Entain Group-owned BetCity was among the first brands to launch its services within the Dutch iGaming market. Earlier this month, powered by Shape Games, the brand launched its online sportsbook and iGaming app, an achievement that marked an important milestone.

The recent launch came after last month, the Netherlands implemented changes to the online gambling sector, requiring iGaming software and content providers to hold a license and restricting advertising. Despite the changes to the sector and the challenges they may bring, BetCity and Shape Games remain optimistic about their growth in the Dutch gambling market and confirmed plans to deliver thrilling, safe and responsible experiences for players in the country.

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Betsson has withdrawn its application for a license in the Netherlands as the licensing process proved to be lengthy and costly.

Betsson used to operate in the Netherlands prior to the market’s regulation. Eventually, the country regulated online gambling, forcing Betsson to pull out from the market. Since the company had actively targeted Dutch customers prior to the regulation, it was subjected to a cooling-off period.

The operator planned to return and undertook the actions needed to secure a license. However, in its interim Q2 report, the company just announced that it has withdrawn its license. Betsson attributed the withdrawal to delays and resource allocation considerations.

The decision was based on significant delays in the licensing process and resource allocation considerations given the attractive current project pipeline for Betsson in other markets. The Group still maintains the possibility of reapplying for a license in the future.

Official Betsson statement

The Operator Is Not Ready to Give Up

Betsson had hoped that its decision to willingly pull out from the Netherlands would convince the Kansspelautoriteit to provide it with a license.

In a further show of its goodwill and desire to play by the rules, the company also closed its former Dutch brand Casino Winter in January this year.

Unfortunately for the operator, the process wasn’t as easy as it had hoped. However, Betsson still remains open to the idea of reapplying for a license in the future.

In an earlier conference call, Martin Öhman, Betsson’s chief financial officer, addressed the decision, promising that the company has not “shut the door” on the Netherlands.

Öhman explained that Betsson wanted to redirect the resources the application was taking elsewhere and capitalize on more promising opportunities. Still, the company remains optimistic about the Dutch market and may eventually reapply for a license.

As a result, Betsson will not be divesting any of the assets it has in the Netherlands.

Betsson’s Business Is Steadily Growing despite the Setback

Earlier today, Betsson published its Q2 report, highlighting its performance during the April-June period. In addition to significantly improving its metrics, the operator underlined some of its biggest deals during the period.

This included a sponsorship agreement with the Boca Juniors and the A1 Padel Swedish Master event.

In addition to that, the company successfully secured content from PA Betting Services and inked a distribution deal with Light & Wonder.

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LeoVegas Group, an international iGaming company, has been granted a five-year gaming license by the Dutch regulatory authority Kansspelautoriteit (KSA) for casino, live casino, and sports betting in the Netherlands. The license was granted to the company, operating through its subsidiary 21 Heads Up Limited. The CEO of LeoVegas Group, Gustaf Hagman, expressed excitement about the opportunity to enter the rapidly growing Dutch market, with plans to go live during the second half of 2023.

Currently, LeoVegas Group operates in nine jurisdictions, offering online casino, live casino, and sports betting under nine different brands. The company has a significant presence in Europe, employing over 1,200 people, with its headquarters in Stockholm and a hub in Malta. In 2022, LeoVegas Group became a subsidiary of MGM Resorts International.

Despite receiving the gaming license, LeoVegas Group has not yet gone live in the Dutch market. However, they have shown their commitment to the market through a sponsorship deal with Blackpool FC, featuring their logo on the football team’s jersey.

The company’s CEO, Gustaf Hagman, emphasised the potential of the Dutch market, envisioning it as an important market in their global growth journey. As an innovative player in the industry, LeoVegas Group also invests in and develops other iGaming companies through its investment arm, LeoVentures.

In related news, Joerg Hofmann and Rene Jansen, Chairman of the Dutch regulator, discussed the rules and regulations in the Netherlands regarding gambling on the GI Huddle.

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Bingoal, a brand with a strong local presence and appeal to Dutch players, will deliver games by Booming Games, and strengthen its library of games in the country. Booming Games has a ton of excellent spot-on games for the operator’s players.

Booming Games Offering a Content Boost to Bingoal

Among the games that are now going to be featured by Bingoal are such top-of-the-range choices by Booming as King Cobra, TNT Bonanza, Treasure Vault, Legendary Diamonds, Mighty Gorilla, Cash Pig, Go Bananza, and so many others.

Booming Games prides itself on providing uniquely-themed games that focus on market innovation and gamification. The titles are developed with a big emphasis on gamification and strengthening the rapport between the developer its partner operators, and their players.

Booming Games CCO Frederik Niehusen said that the company was very happy to have partnered with Bingoal. He argued that the operator had significant experience in both the offline and online landscapes and that the partnership with Booming will elevate the brand’s stature in the Netherlands and beyond.

Bingoal casino product manager Dany Salmon was similarly pleased with the opportunity and argued that Booming provides a range of highly-entertaining games that are going to strike home with the casino’s own players, adding:

We are excited to announce that these entertaining games will now be available in our casino lobby, and we are truly pleased to have established this partnership.

Bingoal casino product manager Dany Salmon

Navigating the Lucrative and Demanding Market in the Netherlands

Bingoal has been committed to strengthening its presence in the Netherlands despite some regulatory headwinds the brand has faced of late. The company was fined €400,000 ($430,000) by the Dutch Gaming Authority over the purported advertisement of games of chance to young people.

In the meantime, Bingoal has been strengthening its casino content offering by featuring games by some of the industry’s top suppliers. Among those is Playson which signed a deal with the brand to provide it with its own games.

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