Dirk Kuyt and Wesley Sneijder 'interrogated' as witnesses in drug case investigation

Former Netherlands international footballers Dirk Kuyt and Wesley Sneijder have been 'interrogated' by Dutch police as witnesses in a drug case investigation, according to reports from their home country.

The pair are reportedly among a number of footballers quizzed in relation to a gambling site, which authorities claim may have ties to an alleged 'godfather' known as Piet S.

Kuyt and Sneijder were both part of the Dutch team which reached the World Cup final in 2010, with the former also playing more than 200 times in the Premier League for Liverpool.

And reports from outlets in the Netherlands make reference to interviews which reportedly took place earlier in 2021, with the ex-players alleged to have spoken to police in a witness capacity.

According to Nos.nl, citing reports from De Telegraaf and AD, the investigation relates to an alleged illegal gambling site which the Public Prosecution Service says was set up by the son of Piet S.

The two footballers reportedly gambled on the site in question, and the reports from the Netherlands mention conversations with authorities in relation to this.

Sneijder spoke to police to give his witness statement in January this year, with Kuyt meeting with authorities the following month.

The gambling site in question, Edobet, was reportedly licensed in Curacao and offered casino games as well as sports betting.

According to De Telegraaf, "Several (former) professional football players" have been interviewed in relation to the case, which comes more than a year after the arrest of Piet S. as what Nos.nl describes as part of "an investigation into international drug trafficking at home and abroad".

"S. has never been convicted of large-scale drug trafficking or liquidations, with which he has also been associated," the publication notes.

Reports into the case cite a hack of messaging service Encrochat, through which conversations involving the alleged betting activity of Kuyt and Sneijder have been made public.

Sneijder denies having played on the gambling site in question, according to reports, but according to AD's report, the player was approached by people "who said he was in debt and that he would guarantee Wout van K," an individual who has been identified by the ex-player as "my father's cousin, seen once".

Sneijder's agent Guido Albers confirmed the investigation was "about gambling" but said "Wesley is not involved".

Online Gambling Delayed by Six Months in the Netherlands

The Netherlands has announced that the planned launch of online gambling in the country is being put back by six months. The new date for the anticipated start will now be 1 July 2021 to give the country enough time to pass and vet applications from operators.

According to the Sander Dekker, Minister of Justice and Security, the reason for the delay is due to the proposed changes made to Remote Gambling Act which means it won’t come into force until 1 January 2021. As this is six months later than originally expected, the secondary legislation around licensing has been delayed by the same length of time.

Verification process

The regulator in the Netherlands, Kansspelautoriteit (KSA), had previously announced that no gambling company would be able to apply for a licence under the new legislation until it has been formally enacted. It also said that it needs six months to process and check any applications. As the release date for the Remote Gambling Act has been pushed back by six months, the regulator has insisted that the launch date for operational play is delayed too.

Part of this process will include checking that each operator has a robust age-verification system in place. The minister said that underage gamblers had in the past been able to access state-run sports betting without a problem and he was concerned that the issue may be repeated with other online betting.

The Nederlandse Loterij has since upgraded its processes to block younger gamblers and Dekker said they expect other gambling operators to do the same, or else face sanctions.

A pro-gambling government

It wasn’t all negative news for the gambling industry however as Dekker insisted that preventing gambling advertisements was not on the government’s agenda. Some legislators had been renewing their calls for a total ban but the minister said that was not an “objective of the current Dutch gambling policy”.

Dekker said there was evidence that restricting gambling advertisements could have a negative impact on those who play, as it would remove the ability to channel individuals towards locally licensed sites which are robustly checked and supervised. Without the ability to monitor, implement and drive responsible gambling initiatives in the same way, this could lead to more problem gambling .

The minister admitted that they may consider tightening existing gambling rules in certain areas. The legislation they may toughen up includes introducing a time limit on advertising through certain types of media, stopping behaviour targeting and restricting credits for free play or other bonus offers. Celebrity endorsements are also likely to be overhauled, particularly those who may have a strong appeal to younger players.

Dutch Regulator Says New Online Licences Almost Ready

The gambling regulator in the Netherlands, the Kansspelautoriteit (KSA) has announced that once the legislation comes into force applicants will be able to obtain their licence. The Netherlands Remote Gambling Act was passed earlier this year and the body has provided more information about what will be required to obtain a licence to operate.

A regulated gambling market is planned for launch in January 2021, just over one year away, but some of the legislation is expected to come into force from next summer.

A change for the Netherlands

The decision from the Dutch senate to approve online gambling means that there will be four difference licences available for purchase. These include casino games where the player is up against the operator (such as table games and slots), online poker and other peer-to-peer casino games, sporting events betting and horse racing and trotting betting.

Anyone wishing to apply for an online licence in any of these areas will have to complete the application in Dutch and pay the fee which is non-refundable. Each application costs €45,000 and if a licence is not granted, this fee will not be returned.

Raft of requirements

It may seem a fairly straightforward matter to obtain the licence but it is not just about proving the operator’s identity. The KSA has a long list of robust requirements that it expects every operator to meet if it wants to offer its services to the Dutch market.

These are wide-ranging and including aspects of Dutch consumer law as well as global legislation on gambling and good practice.

Each operator must demonstrate that it will follow tight rules on checking the identity of customers and have a strict policy which helps to enforce the prevention of fraud. They must agree to work closely with the KSA to prevent match-fixing or corruption within sport and its marketing campaign must be vetted by the regulator in advance.

The KSA also announced that it will be utilising advanced technology so it can be connected to operators at all times. This will take the form of a Control Database which every operator must be linked with. This connection will enable the KSA to check digital data at any time and satisfy itself that rules are being properly adhered to.

With such a long list of requirements to qualify for a licence, the KSA has said it will be running workshops to help operators make sure they’re meeting all the conditions before applying.

Match fixing evidence uncovered in Dutch football's top league

Dutch football association KNVB confirmed that match fixing took place in at least two Willem II matches in the top league. Both cases involve former Willem II player Ibrahim Kargbo and match-fixer Wilson Raj Perumal.

The first match fixing case involves the Willem II match against FC Utrecht on August 9th, 2009. Email conversations between Kargbo and match-fixer Wilson Raj Perumal show that the two agreed that Willem II will lose the game. In the emails Kargbo indicates that “the captain”, then Michael Aerts, and a third player will cooperate. In return for deliberately losing this match, each of these three players would receive 25 thousand euros from Perumal.

Perumal later claimed that the match fixing failed – the agreement was that FC Utrecht one by more than one goal, which did not happen. Nevertheless, it is clear that match fixing took place, according to the KNVB’s integrity unit. There is not enough legal evidence to prove that Aerts was involved and the identity of the third person is unclear.

The investigation also showed that Perumal and Kargbo arranged a charity match between Willem II and Sierra Leone on November 14th, 2009 with the aim to manipulate the results for gambling purposes. Despite the lack of legal proof that the game was actually manipulated, the integrity unit believes that Kargbo and Perumal organized the match with the intent to manipulate it. The integrity unit also found evidence that Kargbo and Perumal had contact with each other about manipulating Sierra Leone’s national team’s matches for some time.

“The Dutch football has as one of the last in Europe officially lost its innocence in this area”, KNVB operational director Gijs de Jong said in reaction. “We know match fixing does not stop at national borders and the KNVB said long ago that it can happen in Dutch competitions. Yet now it was officially established. At the same time we hope that something good will come out of this. Namely that it contributes to the urgency in the Netherlands to combat this scourge in the sport.”

The KNVB shared the results of this investigation with UEFA, FIFA and the Dutch Public Prosecutor. As Kargbo is no longer a member of the KNVB, the professional football prosecutor can not act against him. The Public Prosecutor will carry out a criminal investigation into this matter.

Dutch Minister promises movement on internet gambling regulation

Following the resignation of Fred Teeven the former Nederland’s Secretary of State Justice in regard to allegations of misleading the parliament in a compensation claim in 2001 to a convicted drug trafficker the newly appointed replacement Klass DiJkhoff has promised to ensure that online gambling regulation and licensing will continue forward while he is in office.

Fred Teeven widely regarded as the creator of the Nederland’s online gambling bill retired following the allegations and fears amongst supporters for online gambling in the country were that it would now be stalled have be laid to rest following DiJkhoff’s announcement.

Speaking to Dutch media DiJkhoff stated that his office was committed to completing and processing the regulation of online gambling. The new secretary said that he supports all the provisions that have been put forward by his predecessor.

It is understood that some 200 online gambling operators have expressed interest in taking part in any legalised online gambling that is allowed in the country. Estimates say that over 1 million Dutch nationals play online with unregulated online gambling sites at present.

Dutch football association investigates alleged match-fixing

The Dutch football association is opening an investigation and calling for a criminal probe into detailed allegations published Saturday of the alleged fixing of two matches in the top-tier Eredivisie.

Respected daily De Volkskrant reported that two matches involving Tilburg team Willem II — against Ajax and Feyenoord — were fixed during the 2009-2010 season by players allegedly paid by a Singaporean syndicate.

The Volkskrant identified former Willem II and Sierra Leone midfielder Ibrahim Kargbo as ringleader, an allegation Kargbo denied in an interview with the newspaper. Kargbo was suspended last year from international duty by his country's football authorities, along with three other players, over alleged attempts to fix a June 2008 qualifier against South Africa.

The Dutch football association called the detailed Volkskrant investigation "the most concrete case yet in the Netherlands" of alleged fixing.

"We will do everything in our power to get to the bottom of this," the association said on its website.

As well as handing the case to criminal investigators, the association says it will carry out its own probe by interviewing players, referees and club officials and analyzing video images.

In a written reaction, Willem II said it was shocked by the reports and pledged to cooperate fully with investigations.

William Hill terminates Dutch igaming services

Following the Netherlands Gaming Authority (NGA) recent clampdown on remote gaming operators targeting Dutch consumers. UK operators William Hill has terminated its gaming and marketing services form the region.

William Hill sent an email communication to marketing partners and affiliates asking them to withdraw all marketing inventory promoting William Hill products. The operator will no longer process wagers and players from Dutch IP’s.

The operator stated that it did not want to jeopardise its chances of gaining a future Dutch igaming license, it would therefore comply with the NGR’s request to stop igaming services.

NGR had warned numerous operators that it would be willing to reject future licence applications on the basis of continued unlicensed activity targeting Dutch consumers.

Last month the NGR had asked international operators to register their official interest on legally entering the Dutch igaming market.

Holland online gambling bill stalls

Holland’s online gambling bill which was set to legalise internet gambling in the country is in danger of missing its 2015 target because opposition parties within the coalition government are trying to stall the progress of the bill.

A planned meeting to discuss the provisions of the bill was cancelled last week in attempt to delay the passage of the bill which was hoped to reach a parliamentary vote before the summer recess that starts in mid-July.

However many observers believe it will still make the deadline and will be passed in to law for 2015, whether that is the case depends on how much more opposition there is in the coming weeks to delay the bill.

Holland Casino close to bankruptcy

Holland Casino the state-owned gaming group is under threat of going bankrupt after being put under direct supervision after piling up debts of over €60m and soon to hit €100m.

In a move to stave off bankruptcy the company have cut 150 jobs and taken away benefits for employees, Holland Casinos has a monopoly in the country with 14 casinos in operation.

The operators woes are put down to lower visitor numbers and lower spend per head of those still visiting the casinos. Also some observers in Europe place the blame on management of Holland Casinos to not adapt quicker to changing circumstances within the sector and customer needs.

Only in June CEO of Holland Casinos Dick Fink resigned because of poor results, the future of the state owned casinos are now in the balance.

Dutch Online Gambling Worth Up To €370m, Says GamblingData

Dutch online gambling operators can expect to generate €266.5m in gross gambling yield in the first year of regulation, a figure that will rise to almost €370m in 2016, according to a new report from GamblingData.

The Netherlands is on track to become Europe’s next major online gambling market to open for business following the publication by the Dutch government in May of a draft bill that seeks to fully regulate the sector for the first time.

If implemented as it stands, the draft law would impose a 20 percent tax on gross gambling yield (GGY) and would not limit the number of licences issued or restrict the types of online gambling which could be offered to consumers, with the exception of a ban on spread betting.

Pending a vote in the lower house, the bill is expected to take effect from January 2015.

In the wake of the publication of the draft law, GamblingData has set out to forecast quarterly and annual GGY for online sports betting, casino and poker in the Netherlands over the first three years of regulation.

Based on an effective market launch date of January 2015, GamblingData estimates that online gambling in the Netherlands will generate approximately €266.5m in GGY in the first full year.

Licensees can then expect to see revenues, measured as GGY, grow 38 percent year-on-year to €368.5m in 2016, as sports betting benefits from the Euro 2016 Football Championship in France and online poker ramps up rapidly on a sequential quarterly basis.

GamblingData expects that market growth will flatten somewhat in 2017, contracting by 1 percent to €365.7m as poker spend stalls and sports betting suffers from the absence of a major summer football tournament.

On the basis of a relatively liberal regulatory system and the moderate taxation levels put forward in May, GamblingData believes unlicensed operators will be constrained to around 13 percent of the market from 2015 to 2017, safely within of the maximum 25 percent share that the draft bill envisions.

In line with previous reports, GamblingData's Dutch forecasts are predicated on base data from an established European regulated market, in this case Italy, and are calculated using GamblingData’s proprietary forecasting model, incorporating a quantitative and qualitative comparison of the two countries under observation.

An adult population just over a quarter of the size of Italy’s will inevitably limit the scale of theDutch market, but, adjusting for this differential, GamblingData’s analysis of operating conditions in the two countries foresees a Dutch regulated market more favourable towards operators than its Italian predecessor.

Some political risk remains however, with the operator-friendly provisions yet to be cemented into law. Currently the draft bill is expected to reach parliament around the turn of the year, with votes in the lower and upper house to follow.

Dutch regulators invite online operators to consultation

Dutch regulators have invited operators to a consultation on the 28th January where proposals for a new liberal regulatory system will be discussed.This will be the first formal meeting between the Dutch Gaming Authority (DGA) and operators interested in acquiring a license under new gaming laws.

New proposals will be published at the end of March and regulation is expected to come into effect sometime in 2014.

Gaming regulation has been a hot potato in Dutch politics over the last few years as politicians clashed over the extent to which online gambling should be liberalized.

Under the existing Dutch Betting and Gaming Act, the operation of online poker is illegal in the Netherlands. The regulation ignores all forms of remote or online gambling.

But recent elections brought a new coalition government into power, and its leader Mark Rutte has taken on the issue. He is determined to create a legal online gaming structure to “exploit” the tax raising opportunities that regulation will provide.

Earlier suggestions that the new laws should only legalize online poker have fallen away and the new likelihood is that licenses will be awarded for casino and sportsbook betting too.

Dutch coalition Government discuss sale of Holland Casino

The new Dutch ruling coalition of three political parties (the Liberal Party, Volkspartij voor en Democratie & the Labor Party) have announced their plans to modernise the gambling policies in the Netherlands aswell as reaching an agreement on the sale of the state-owned Holland Casino.

A gaming tax on land-based lottery & online gambling is in the pipeline for implementation in 2015.

Online gambling regulations will include:

Online gambling market to be legalised & regulated by the next termAn initial suggestion of a 29 percent gaming tax levied at online providers
Illegal providers currently providing services to Dutch residents to be excluded from the process

Licences withdrawn on non-payment of prescribed gaming tax

Modernisation of the Dutch online gambling policy will encompass regulation of the internet gambling, sports betting & poker sectors.

Betfair devises Dutch and Danish licence plans

Betfair is preparing to re-apply for a Dutch licence only two months after losing a five-year long court battle against the country’s monopoly De Lotto this summer.

Director of European public affairs Tim Phillips: “We are certainly planning to, but we are waiting for the impact of the European Court of Justice (ECJ) ruling to filter down to the local courts before we get the opportunity. There is an ongoing review process taking place in the Netherlands and we are yet to see the results of that,”

Betfair and Ladbrokes’ long-running dispute against the Dutch authorities began in 2005 when they ruled that both operators should stop taking bets from Dutch citizens due to concerns about fraud. It ended in the authorities’ favour in June this year, when the European Court of Justice outlined that any online offering other than the incumbent monopoly can be restricted, even if operators are licensed in other EU countries.

At the time Betfair declared it would re-apply for a licence in the Netherlands “at the first opportunity”, after the court confirmed its long-stated view that sports betting licences in the EU should be allocated in a transparent and equal manner, to allow Dutch consumers to benefit from competitive bids for the Dutch market.

Betfair is also currently working with a French consultancy and will start talking to the French authorities in September to put its views across on the country’s high tax and protectionist regulations, Phillips said. Betfair has not applied for a licence with French regulator ARJEL as it considers the system to be unprofitable for foreign operators.

As it continues to ramp up its expansion in Europe, Phillips said the British betting exchange would apply for a licence in Denmark “as soon as we can” when the market opens at the beginning of 2011. He called Denmark a “good level playing field” compared to the French system and that the Scandinavian country is politically “much more open to new ideas”.

Phillips said Betfair has its product offering ready and is planning to enter the Danish market early next year once the market opens up.

Betfair is also in talks with the Greek government to discuss legislation there. This follows the chief of Greek monopoly OPAP revealing in June that such discussions were underway. “We will have to see if it works commercially, but we intend to apply [for a Greek licence]”, said Phillips. “Greece is more important size-wise than Denmark, but Denmark is good strategically because of the location and proper regulation”.

Betfair intends to apply for a licence in Spain later this year and in Germany, although Phillips said that the devolved governments in both countries could be obstacles. Part of the operator’s core strategy is emerging markets, currently in Europe and increasingly in the rest of the world: “South Africa, Asia and even Latin America”, he added.

Betfair and Ladbrokes lose battle against Dutch monopoly

Betfair and Ladbrokes have failed to topple Dutch lottery and betting site De Lotto’s monopoly, following the decision published by the European Court of Justice (ECJ) this morning.
The court’s ruling stated that any online offering other than the incumbent monopoly can be restricted, even if operators are licensed in other EU countries, until egaming laws are harmonised across the EU.

The judges said: “The mere fact that an operator such as the Ladbrokes companies lawfully offer services in that sector via the internet in another member state is not a sufficient assurance that national consumers will be protected."

Betfair however declared following the ruling that it will be applying for a licence in the Netherlands “at the first opportunity”, after the court confirmed its long-stated view that sports betting licences in the EU should be allocated in a transparent and equal manner, allowing Dutch consumers to benefit from competitive bids for the Dutch market.

The decision upholds the December opinion of Advocate General Yves Bot, and is the latest round in Ladbrokes’ and Betfair’s long-running battle with the Dutch authorities since 2005, when they ruled the operators stop taking bets from Dutch citizens, citing concerns with monitoring fraud.
Betfair also said in its statement today that the court’s reiteration of points from previous cases that online betting is more dangerous than traditional offline forms had been “made without foundation”.

Betfair’s director of European public affairs, Tim Phillips said: “Until we get a clear lead from the Commission, gambling consumers will continue to be told that their preferred leisure activity is the only one in Europe which doesn’t benefit from an open market. ECJ rulings are not addressing the simple fact that consumer choice between regulated products is being dictated to in a manner which no other industry has to accept.”

Philips however welcomed the European Commission’s announcement of a Green Paper on online gambling, which he hoped would provide “an opportunity to address these key issues.”
Today’s ruling acts as a guidance for the Dutch courts, which will need to reach a final decision on the case. Their decision is expected towards the end of this year.

Betfair and Ladbrokes lose legal first round against Dutch government

The Advocate General (AG) of Europe’s highest court, the European Court of Justice (ECJ),has provided his opinion in the cases concerning Betfair and Ladbrokes against the Dutch Government before the ECJ in what represents an early stage victory for the monopolies but that poses a threat to the legality of De Lotto’s automatic appointment as The Netherlands sole egaming supplier.

The AG’s opinion is not legally binding, but is typically seen as being an indication of the tone of the ECJ’s later, binding decision.

AG Bot concluded that article 49 of the EC Treaty must be interpreted to mean that “the principle of equal treatment and the transparency requirement that flows from it also applies to the gambling sector in the context of a single license regime,” implicitly challenging De Lotto’s right to act as The Netherlands’ sole legal supplier of online gaming, online sports bets and the national lottery without having to compete in a tender process against EU-licensed lottery providers.

However Bot did not challenge the legality of a state enforced monopoly per se.

Ladbrokes’ managing director of remote betting and gaming John O'Reilly said: " We continue to believe that the ECJ should uphold principles of free and fair competition across borders as there is no logic in the fact that the Dutch monopoly could freely compete against us in the UK but we are prevented from accepting bets from any Dutch resident that finds us on the Internet.”

Sigrid Ligné, Secretary General of lobby group the European Gaming and Betting Association (EGBA), which represents operators Bet-at-home, Bwin, Digibet, Expekt, Interwetten, PartyGaming and Unibet, said: “This is a key question for the Court given that the exclusive licence has repeatedly been handed out to De Lotto without any form of tender.”

Chris Bryant, a partner at the Brussels office of law firm Berwin Leighton Paisner, said: “This is round one to the monopolies.”

April Carr, an associate in the EU competition and regulatory team at law firm Olswang said: "This will be disappointing for those online operators who thought they could rely on EU law to liberalise the gaming markets. If the opinion is followed by the European Courts then there is reduced scope for them opening markets."

The case continues and a judgement is expected next year.

Betfair and Ladbrokes take Dutch government to court

Betfair and Ladbrokes to take on the Dutch government tomorrow in two separate landmark legal battles at the EU’s highest court, the European Court of Justice (ECJ), over the right of offer egaming in the Netherlands.

For Betfair, the case follows a formal complaint made to the European Commission in May about a letter from the Dutch government to banks telling them to block payments from the British betting exchange’s Dutch customers, arguing that the letter was in breach of EU rules which allow companies authorised in one European Union member state to offer goods and services in any other.

If the case is successful, Betfair will also sue the Dutch government for damages that legal counsel Mark Warrington told EGRmagazine.com “will certainly run into millions.”

For Ladbrokes, the ECJ hearing will decide the fate of end of the British bookmaker’s seven-year struggle against an injunction imposed by Dutch courts that prevents Ladbrokes from accepting bets from Dutch citizens on Ladbrokes.com, which was referred to the ECJ in June.

Ladbrokes remote betting and gaming managing director John O’Reilly said: “Ladbrokes is a well regulated, licensed betting and gaming operator and under Article 49 of the Treaty on European Union our services should be accessible in other Member States.

“The injunction against Ladbrokes is aimed at protecting the revenues of the Dutch state monopoly sports betting provider and there is no justification for it in European Community law. It does not make sense that a Dutch citizen can cross the border into Belgium to place a bet in a Ladbrokes shop, yet we are banned from accepting bets from Dutch citizens online.”

As reported on EGRmagazine.com, however, in September the ECJ ruled against Bwin in favour of Portugal’s right to continue to favour state monopoly La Santa Casa da Misericordia (SCM), permitting states to protect state operators from competition if that decision is made to protect citizens from fraud or other crimes.

The decision led Ladbrokes to drop its five-year legal action against Norway’s state monopoly, although it also pledged to unite with other operators to fight other state monopolies across Europe.

The judgements in these two cases are not expected for 6-12 months.

Dutch Minister of Justice Adamant: Poker is a Game of Chance

Poker will continue to be considered a game of chance as far as the Dutch Ministry of Justice is concerned. And even if it were to be officially recognised as a game of skill, which it will not, it should never be deregulated.

This is a summary of the answers given by Dutch Minister of Justice Hirsch Ballin to fellow lawmakers after a leading professor of probability and mathematical statistics offered a formula to support poker's classification as a skill game.

As reported by Gaming Intelligence Group, Professor Van der Genugten challenged the Dutch Supreme Court's 1998 decision that poker is a game of chance after developing a formula which showed that poker required a higher degree of skill than many other so called games of skill, leading to calls on the Supreme Court to reconsider its classification.

Several Dutch politicians submitted written questions to Hirsch Ballin as a result, asking whether the status of poker should be reconsidered or not.

In his response the Justice Minister said the Dutch state will continue to take action against illegal poker operators, referring to research conducted in 2007 by both the Dutch Gaming Control Board and the University of Twenty which confirmed that poker has a relatively high risk of addiction. As a result, he said the state monopoly of Holland Casino remains valid from the point of view of player protection.

Ballin added that he sees no reason whatsoever to request the Supreme Court to revise the status of poker, and pointed out that poker is currently considered a game of chance in 33 European countries.

Not only will poker in Holland remain a game of chance despite evidence to the contrary, but restrictions on online poker will also become more draconian. Mr. Ballin said discussions between financial institutions and the Ministry of Justice on blocking transactions to and from illegal gaming providers was making steady progress.

He said that the large number of parties and intermediaries involved in transaction processing as well as laws relating to privacy made the process extremely complex, however a satisfactory result was expected.

Ballin added that if gambling operators and their intermediaries do not 'assume their responsibility' in this matter, the Ministry of Justice will lodge a complaint against these organisations.

Dutch Senate Sets Online Gaming Tax at 40.85%

The Dutch Senate yesterday passed a proposed bill on gaming taxation, enabling the government to tax games of chance, including those provided by 'illegal' online operators.

The bill mainly concerned a change in the taxation method for domestic providers of 'illegal' online gaming, as well as for persons who win at foreign online gaming sites.

The Senate considered internet gaming to be comparable to regular table games offered in casinos, due to the fast succession of games available and the possibility to continue to stake earned winnings while playing.

For table casino games, a separate taxation method is already included in the current gaming taxation law. The Dutch Senate has decided therefore to introduce a similar tax system for games of chance offered online with tariffs set at 40.85%.

At the core of yesterday's debate was the moral question of whether taxing illegal activities implies an approval of the same. The majority of the Senate was convinced by Secretary of State De Jager, who argued that taxation law does not differentiate between legal and illegal providers, and that both should be treated in a fiscally equal manner.

In spite of ardent attempts by Socialist Party Senator Reuten to argue against the tax, the Senate agreed with the government point of view.

Christian Democratic Party Senator Essers pointed out that the bill only concerns an amendment to the Betting and Gaming Act which already provides for the possibility of taxing gaming proceeds from illegal gambling practices. In addition, he considered taxation a more effective tool to act against illegal practices than criminal proceedings, as preferred by the Socialist Party.

Senator Leijnse of the Labour Party took a more practical, rather than moral approach. His primary concern was how to block American online gaming providers from offering their games via the internet in The Netherlands.

Leijnse also requested information on how the tax authorities may encourage players to declare income from gambling proceeds, as well as how they can deal with gambling operators.