Netherlands to Regulate Online Gambling

It looks as if the Netherlands is the next European Union (EU) country to regulate online gambling. Even though Holland is thought of as financially strong within the EU, the country is suffering financially. The housing market is on the decline and private debt is much higher in the Netherlands than other EU countries. With plans to cut government spending by €16 billion in the next 5 years, the Netherlands needs to a new revenue stream and online gambling is the rescue plan. Under the new regulations, licensed operators will have to pay a gaming tax of 29% on their gross profits.

Prime Minister Mark Rutte stated: “We will modernize gambling policy. Online gambling, sports betting and poker events will be strictly regulated. This way we expect to prevent the offer of illegally operated games of chance in the Dutch market. Compliance with license conditions will be strictly enforced.”

In the summer, the Dutch Gaming Authority issued strong warnings to 40 illegal operators. The warning was sever and informed operators that those who did not comply with the rules would not even be considered for a gaming license. About half of the companies complied with the order including bwin.party which learned its lesson when the same warning was issued in Spain and the company did not leave the market resulting in losing the opportunity to be licensed in Spain.

Regulations in Holland should be commended for the moment as it will protect citizens and provide a safer gambling environment. However, it just reiterates the need for the EU to provide a regulatory framework that all member states must abide by.