High iGaming Tax Rate For Online Operators in Holland Has Euromat Taking the Government To Court

Euromat believes that online operators will appreciate licenses even if they are obliged to pay the same tax as land-based businesses .

The European Amusement and Gaming Federation (Euromat) has filed a complaint with the European Commission regarding Dutch iGaming tax rate. With Holland’s iGaming status about to be made legal under Dutch gambling laws, Euromat is concerned about the state aid and wondered if the 20% gross profits tax rate that online operators will pay is in keeping with the state’s “common interest objectives”.

The Dutch Government revealed that its reason for having online tax operators in Holland paying a different tax rate from land-based operators is solely fiscal. Whether or not it is feasible for online operators to have such high iGaming tax rates and whether they allow licensed operators to have viable businesses have been reiterated time and time again, as European markets regulate their iGaming sectors.

Representative of Dutch government may have to face irate online operators end of May

Although Euromat admits that ‘Responsible online operators will have to enter regulated markets and pay the applicable tax rates if they want to grow’ it has also warned the Dutch State Secretary that it should expect operators of internet gambling in the Netherlands to express their wrath regarding the outrageous online fees in Euromat’s Gaming Summit on May28, in Amsterdam.

The trade body also pointed out that some publicly listed online internet casinos in Holland had taken the decisionto only operate in regulated jurisdictions and “will actively ban consumers of countries where they do not hold a license. In other words: in the case an operator would refrain from applying for a Dutch licence, it will have no impact on the degree of illegal gambling activities.”