New coalition agreement raises Dutch gaming tax to 37.8%

A significant change in the gaming tax rate is set to take place in the Netherlands, as outlined in the recently announced coalition agreement between the PVV, VVD, NSC and BBB factions. The gaming tax will rise to 37.8% according to the budget annex released late at night on May 15. The adjustment is expected to generate an additional 220 million euros per year for the state's finances.

Casinouniu News reported that the agreement was concluded just in time as the parties reached an agreement just before the deadline. At 7:30 p.m., the PVV faction was the first to approve the agreement, the BBB faction at 9:30 p.m., and the NSC 20 minutes later. At 11:40 p.m., the VVD faction unanimously approved it, signaling the end of a negotiating session marked by late-night deliberations over pizza.

By 1:39 a.m., the final details of the agreement were reached, and the 26-page document was handed over to House Speaker Bosma just after 2 a.m. On May 16, the agreement, titled "Hope, Courage, and Pride," was officially released to the public in the Netherlands.

a game tax increase

The coalition agreement, formed by right-wing parties, did not elaborate on gambling within the main text. But the budget annex details the planned increase in the game tax, which aims to pump an additional 222 million euros into the country's finances each year, at 37.8% from the current 30.5%.

An annex read, "We raise the gambling tax. The gambling tax will increase by €202 million on a structural basis. This means a rate of increase from 30.5% to 37.8%." The increase in game tax has been a known priority for some parties. According to an analysis by the VVD's Central Bureau of Political Planning in November, the VVD sought to raise €400 million for the country through a game tax increase.

industry reaction

Last week, KPMG's report highlighted the negative impact it could have on the arcade sector, with just a 1% increase in gaming tax. Since then, trade association VAN Kansspelen has warned of potential negative consequences. After the budget annex was made public, VAN Kansspelen has repeatedly expressed concern, expressing shock at the proposed tax hike. They have highlighted the negative impact it could have on the industry.

NOGA (the Dutch Online Gambling Association) has also voiced their concerns, warning that the hike could jeopardize the legal market. As the impact of the new tax rate unfolds, industry stakeholders are likely to continue their advocacy against the hike, arguing for the need to balance financial goals with sustainability in the Dutch gaming sector.

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