The Dutch Coalition Government Could Increase the Gambling Tax to 37.8% - Latest Global News

The Dutch Coalition Government Could Increase the Gambling Tax to 37.8%

A coalition agreement between four political parties in the Netherlands could increase the gambling tax to more than 35 percent.

According to Dutch news agency, the coalition agreement’s budget annex provides for an increase in the country’s gambling tax from 30.5 percent to 37.8 percent, depending on the implementation of the agreement. The increase would take effect from 2025.

This adjustment would bring an additional 202 million euros ($219.6 million) annually to the state treasury. The political parties involved in the agreement are the Party for Freedom (PVV), the People’s Party for Freedom and Democracy (VVD), the New Social Contract (NSC) and the Farmers-Citizens Movement (BBB).

Dutch leader Geert Wilders agreed on Wednesday (May 15) to form his first right-wing coalition government, six months after surprisingly winning a quarter of parliamentary seats for his PVV party. However, he will not become the next Dutch prime minister, opting instead for an experimental “business government” regime.

In November, seven parties wanted to raise an additional 200 to 400 million euros in state funds through a higher gambling tax.

The coalition agreement, entitled “Hope, Courage and Pride”, is due to be unveiled today (May 16).

Prohibition of advertising for online gambling

In response to concerns about gambling, the Dutch House of Representatives voted to introduce strict bans on advertising online gambling and on “high-risk” gambling activities such as online slots.

The Netherlands had previously banned untargeted gambling advertising. A new ban, effective from July 2023, has extended these restrictions to mass advertising through television, radio and sports sponsorships. In 2024, the gambling tax has already been increased from 29.5 percent to 30.5 percent.

The House of Representatives has now voted to ban online slots entirely, sparked by concerns that players cannot control the results of these games. Socialist Party MP Michiel van Nispen was at the forefront of these legislative proposals.

Although the House of Representatives has approved these bans, their final implementation rests with Franc Weerwind, the Dutch Minister for Legal Protection, who will examine and decide on the legality of these changes.

The proposed bans faced significant opposition from the gambling industry. The Dutch Online Gambling Association (NOGA) argues that these restrictions could inadvertently push players into unregulated black markets.

“A majority in the House of Representatives is playing an expensive game with online players who are now consciously choosing the legal offer,” said De Goeij.

“If we soon discover that politicians have made the wrong decisions too hastily, the House will be responsible for the negative consequences.”

What does the increase in gambling tax mean for consumers in the Netherlands?

When someone wins a prize, gambling companies and lotteries take responsibility for paying the gambling tax, so the winner does not have to file a tax return for this. However, if the winnings are particularly large, the winner may be subject to wealth tax at a later date.

Featured Image: Canva

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