Online Gambling Regulation in Netherlands: What Will Change In 2021 (Facts & Figures)
The approach towards regulation on Gambling in the Netherlands is so conservative. The Dutch government has put stringent measures on all forms of Gambling, which are legal in the country. The approach is an effort by the government of the Netherlands to protect its citizens.
With the constant change in the online gambling industry’s growth and improvement, there is increasing interest in the popular activity. The government has seen the importance of putting legislation to control online pastime. As time goes by, the country seems to lessen the stringent measures on the sector by implementing a new law on remote gaming.
History of Online Gambling in the Netherlands
All forms of Gambling in the Netherlands have been under the Holland Casino company since the 1970s. Lotteries, horse racing, sports betting, and all the 13 casinos around the country have been under the control of the company and at times in partnership with other organizations. The company is behind the start of the first casino in Netherlands Zandvoort in the 1970s. Online Gambling has been on the increase since then, leaving the players unsure of the legal aspects of their gameplay.
The gaming authority in the country cautioned on the illegalities of targeting players from the country and accepting them in their casinos. Besides, the supreme court ruled that it is illegal to offer the service to the Dutch citizens or permit them to gamble on their online casinos. The ruling prompted the major online casino companies such as Betfair to go to court claiming inconsistency of the restrictions by the Dutch government regarding the European Union laws.
There was a postponement of the matter with the European Court of Justice deciding on the ruling. However, the court ruled online Gambling as illegal with a supportive argument that any ban on the reasons for addiction and crime prevention is right. A new ruling by the Supreme Court in 2012 maintained the ban on Online Gambling.
However, the turning point was in 2013, when the Netherlands’ gaming authority began to draft new legislation. The legislative bill came to pass in 2014 and was meant to legalize Online Gambling. However, there was a requirement that approved operators were the only ones with the privilege to obtain a license valid for five years that they would use in offering both games of chance and skills.
Remote Gaming Bill
Though there was an ease in the regulations in the gambling sector in 2014, liberty cannot be compared to neighboring countries. The government of the Netherlands in 2019 has been working to ensure more liberation of Online Gambling. The efforts are notable through changes in the Bill on Remote Gaming.
A move by Minister for Legal Protection in 2019 led the introduction of the secondary legislation to oversee online Gambling. The legislative bill that obtained notification in the parliament on 24 July 2019 addresses all online gaming requirements. That is integrity in gaming, restrictions on marketing and bonuses, and anti-fraud.
The new legislative law allows foreign online companies to apply for their licenses in the country. Besides, the Bill on Remote Gambling makes it legal to play poker, online casino , and sports betting in the Netherlands. Though the bill is not known entirely, at least people have a clue of its aspects.
The companies are expected to incorporate particular policies and tools as per the iGaming regulations to reduce addiction. Some of the tools to protect the players include self-exclusion programs.
The new legislative draft proposes making it illegal to bet on events where one participant influences where they dominate in the determination of the outcome. The impact is that the players may not be able to place a stake on popular golf tournaments and single players. However, it is not clear whether that would be the situation since there was room for the expected impact of the sports betting sector’s restrictions once the draft kicks off in 2021.
Cooling Off Period
The cooling-off period is one of the major provisions added by the Dutch legislature during the passing of the Bill on Remote Gambling. It allows the operators who currently offered their services to the country’s players to continue for two more years without the consent of the regulatory body. After serving for the cooling-off period, the operator becomes eligible to obtain the license for online Gambling.
For eligibility, the operator must have been active in the Netherlands gambling market before 2018. An operator is deemed active if they meet certain requirements such as having their site with an .nl domain and providing Dutch language services. The regulatory authority completely excludes operators aiming for the dutch market from July 2019. The new regulations are set for January 2021 onwards as the licensing window kicks off in the mid-2020.
Gambling Tax
The Dutch government focuses the taxation requirements on the gaming companies and exempts the players from any taxation on their winnings. However, it has been a concern for some of the companies with the tax rate standing at 29 percent with expectations it may rise to 30.1 percent with the new bill. The Gaming Authority cites that the increase is necessary when there are adjustments to put the new legislation into force, though there will be a reduction later.
Regulations on Online Gambling
It is far-fetched to state that online Gambling in the Netherlands is entirely legal. The government advises playing on approved sites for the safety of their gameplay. It will take time to play online casinos due to the waiting period as the sites obtain their license.
While foreign operators may still offer the services as test water amidst the warnings, playing on their sites has no legal implications. However, the drawback is that the Gaming Authority shuts the site down, which means the players will lose their funds. Therefore, it’s advisable to play online casinos that that has a legal license, and avoid casinos zonder CRUKS (without license in Netherlands).
Conclusion
One of the hurdles faced by online players in the Netherlands is the availability of their home language. The anticipation is that once the online casinos become legal, operators will address the Dutch speakers. Besides, the new legislation will ensure the safety of the gameplay besides more responsibility in Gambling.