Will Dutch Adopt Danish Online Gambling Model?

The Netherlands looks set to adopt the "Danish model" for liberalizing online gambling, after the country's Justice Ministry this week ruled that the proposed "Belgian model" might not be strong enough to meet European Union laws.

The Dutch government first announced in March that it wanted to grant Internet gambling services in the Netherlands and lift gaming restrictions that hundreds of thousands of Dutch ignore every year. The proposal by the new coalition government represented a major shift for the country, which previously defended its online gambling ban at Europe's highest court.

Justifying the decision to the Dutch parliament at the time, State Secretary of Security and Justice Fredrik Teeven said that several European countries including France, Italy, Austria, the UK and Sweden already regulate online gambling, and that the Netherlands should also allow its citizens legal online poker, bingo and sports betting.

Denmark formally implemented its new online gambling regulations on January 1 this year, after the Danish authorities finally received approval from the European Commission. The EC said it supported Denmark's decision to create lower taxes for online casinos than for land-based ones in line with EU state aid rules.

Foreign operators are now welcome to apply for Danish gambling licenses provided they agree to pay a flat 20 percent fee on gross revenue. Their entry into the Danish market was controversial as it ended a 50-year state monopoly, but ultimately it will benefit Danes - and maybe the Netherlands will follow their lead.