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Dutch Senate Approves Gaming Tax Bill- Taxing Online Poker Winnings

by PokerPages.com
Thu, Sep 11th, 2008 @ 12:00am

This past Tuesday, the Dutch Senate cleared a proposed gaming taxation bill that will enable the government to tax games of chance, which they consider online poker to be, including games provided by foreign online operators whom the Dutch have hitherto prosecuted as 'illegal' to defend their state gaming monopoly. The bill is believed to also contain provisions targeted at individuals who win at foreign online gaming sites.

The bill earned the approval of Dutch politicians because it discontinues the advantage online gaming sites over "gaming in the real world". As such, the bill was presented in terms of fiscal neutrality, in that it draws no distinction between legal and illegal activities for the purposes of taxation.

Since the state gambling monopoly holder is Holland Casino, observers infer that the bill aims to bolster decreased revenues from the state gambling monopoly from its online competition.

The new taxation bill aims to change how foreign Internet gambling operators are taxed, as well as how individuals who win at foreign online gaming sites are taxed. The exact tax changes and mechanisms of enforcement are still undefined.

It is understood that the drafting approach to the legislation has involved a cross-section of Dutch political parties. Tjeerd Veenstra, director of the Dutch lottery De Lotto, confirmed to GamblingCompliance that the taxation bill had been the result of ongoing senate discussions and noted that the provisions would solely effect foreign operators.

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