Regulatory Issues Snag Online Gaming Launch into Netherlands

Due to a disproportionately high proposed tax rate by the Dutch government, The regulation of online gambling in the Netherlands' online gambling will not meets its original target date of January 1, 2015.

Release Delayed a Year

Unibet general counsel Ewout Keuleers told eGaming Review that regulatory issues will realistically push the release int the Dutch market back at least a year. Keuleers further explained that Unibet was still awaiting Dutch Parliamentary approval of a final draft of the Dutch Remote Gambling Act.

Unibet's legal head further explained the new schedule: “I think the most optimistic date we can expect the Bill to be finalised is Q2 2015 and then there’s all the secondary legislation and licence application process, which if it started by the end of 2015 would be a very conservative forecast.”

Unibet Anxious to Keep Pace

Keuleers further expressed dismay at the speed of re-regulation in the Netherlands, which has taken upwards of three years. The fact is the new online gambling market is already picking up steam as a trend in many countries and provinces where state-sponsored gambling was formerly prohibited by law.

This is fresh off the Gaming in Holland conference, which Unibet attended. At the conference, Unibet CEO Henrik Tjärnström called for lowering the suggested tax rate for gross gaming revenues from 20% to 10%.

Grey Market Concerns

The higher tax rate, according to the Swedish gaming operator, is more likely to give rise to a substantial grey market. Tjärnström estimates that 43% of Dutch customers would bet outside the regulated market in the first year of a 20% tax, while 20% of the gaming market would remain in the hands of unlicensed operators for the next four years with the higher tax.

Unibet Seeks Equitable Market

Keuleer assures that the more equitable 10% tax rate “increases channeling and helps the market become more sustainable and with a positive dynamic.” It certainly would bring more players into the regulatory fold, and encourage legal gambling activity, which would raise the volume of taxable gaming which would take place in the Netherlands. Clearly, a too-high tax would discourage compliance on the part of users to some significant extent. How much the Dutch government really cares remains to be seen.