The Netherlands’ upper legislative body, the Senate, has given its approval to the Remote Gambling Act. This paves the path for the country to regulate online gambling. However, companies currently providing gambling services without official permission will be granted a two-year period of leniency before they must apply for a license.
The legislation was initially put forward in the lower house, the House of Representatives, in 2014. It will now be formally implemented through a royal decree.
Licenses are anticipated to be issued by the middle of 2020. Companies offering gambling services will be required to put in place comprehensive responsible gambling plans to ensure high levels of player safety. These operators will be subject to a tax rate of 29.1% on their total income.
The gambling law received backing from senators representing various political parties, including the People’s Party for Freedom and Democracy, Democrats 66, the Liberal Party, the Labour Party, and the Green Party.
Opposition to the bill came from senators affiliated with the Christian Democratic Appeal, the Christian Union, the Socialist Party, the Party for the Animals, 50PLUS, and the Reformed Political Party.
Throughout a two-day discussion held from February 5th to the 12th, the Minister of Justice and Security, Sander Dekker, led deliberations on six proposals. Today (February 19th), the Senate cast ballots on these proposals.
The initial proposal, put forward by Social Democratic Party (PvdA) senator Alda Groenhuis, suggested permitting only businesses that have not been active in the Netherlands for the past five years to seek licenses. However, it failed to garner sufficient backing. A proposal by Labour Party (PvdA) senator André Bosman, advocating for a two-year “cooling-off” period for all businesses targeting Dutch consumers, was accepted.
Another proposal, urging the government to consider prohibiting online gambling advertisements, was also passed. A more stringent proposal, demanding a complete prohibition on online gambling operators, was rejected.
Two additional proposals were also approved. The first, introduced by Christian Union (CU) senator Miriam Bikker, called for the government to assess measures aimed at safeguarding minors from the detrimental effects of gambling. The second, put forward by Bosman, required the government to inform the Dutch legislature about its criteria for blocking website access by internet service providers.
The Senate’s approval marks the conclusion of a prolonged period of uncertainty for the Dutch market. The Remote Gambling Act was enacted by the House of Representatives in 2016, but it remained stalled for over two years after being shelved by the Senate.
In this timeframe, the Dutch gaming authority, Kansspelautoriteit (KSA), has been diligently working to suppress unauthorized operations within the market. Nevertheless, a poll conducted in January by land-based operators Holland Casino indicated that the number of citizens engaging in gambling through illicit websites has climbed to approximately 1.8 million.
Dekker, who played a pivotal role in advancing the legislation after it stalled in 2016, expressed his pleasure at propelling a structure that would guarantee a high standard of consumer safeguarding.
“We observe that society is becoming increasingly digital, and presently over 500,000 Dutch individuals are participating in unprotected online gambling,” he stated. “This presents substantial risks such as gambling addiction and deception.
“I am pleased that we can now provide players with a secure system where they can participate in games of chance online in a responsible manner.”
The enactment of the bill was greeted favorably by the European Gaming and Betting Association (EGBA), which also commended Dekker for his endeavors to regulate the Dutch market.
“Online gambling is widespread in the Netherlands, and the current state of affairs is neither equitable nor sustainable, with 1.8 million Dutch citizens gambling online without the protection afforded by Dutch law,” said EGBA Secretary General Maarten Haijer. “Our message is straightforward: a well-regulated market that safeguards players is advantageous for all.”
Nevertheless, Hayer highlighted that the Netherlands needs to find a middle ground between guaranteeing robust consumer safeguards and creating a commercially sound tax framework to ensure the flourishing of the regulated market.
“We are now eager to collaborate with the Dutch Gaming Authority (De Kansspelautoriteit) to make sure that the new regulations are put into practice efficiently, promptly, and in a way that is user-friendly,” Hayer further stated.
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