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Netherland Banks Object to Policing Online GamingFri, Nov 21st, 2008 @ 12:00am Echoing the many objections raised by the American banking industry to policing the UIGEA, representatives of the Netherlands Bankers Association (NVB) similarly told Dutch Justice Minister Hirsch Ballin that his plan to use Dutch financial institutions to police online poker and Internet gambling sites is neither practical nor legal. Minister Ballin had told the Dutch Senate that he would stop the hundreds of millions of Euros leaving the country to foreign internet gaming operators, with the help of the Dutch financial system.
"The Minister wants us to become an extension of the Justice system, but that is not the role of the banks," quoted NVB spokesperson Michel Noordermeer in a Gaming Intelligence Group article.
The NVB is aware that the European Commission has threatened to bring countries to the European Court of Justice for not complying with EU rules entitling EU-licensed companies to do business across EU member states. It already has Holland in its sites (click here for related article). So the NVB has said they would be more willing to cooperate if the Justice Minister first successfully brings an online gaming operator to trial in the Netherlands. They take that position because, "We do not see such a thing happening under the Betting and Gaming Act, especially in light of European legislation," said Noordermeer. He added, "Under these circumstances, the banks will not refuse to accept gaming companies as customers."
A Ministry spokesperson dismissed the NVB's comments saying: "Justice bases itself on Dutch law in fighting illegal internet gaming and there is no room for free choice on the side of the banks. European law has no influence on this."
BANKS ALSO QUESTION 40.85% ONLINE GAMING TAX The financial community also raised questions about the online gaming tax regulations passed in September which treat national and foreign providers differently, in breach of EU law. The bill taxes online games of chance, which online poker is considered, at a rate of 40.85%, to bring them in line with taxes on live casino table games. (click here for related article).
Gaming Intelligence Group noted that members of the House of Representatives also repeatedly called on the Justice Minister for an update on the status of new gambling legislation. Mr. Ballin told the Permanent Committee on Justice of the Dutch House of Representatives earlier this month that the legislation will contain a number of new elements, conceding that recent EU developments had forced him to re-examine the proposal.
"The comments made [on the legislation] in the consultation phase, as well as other events which took place in the first half of 2008, have led me to further re-examine the Dutch system," Ballin said. "I refer to the Senate's rejection of the bill regulating online gambling, the EC's Reasoned Opinion, and the questions referred for a preliminary ruling by the Administrative Law Division of the Council of State and the Supreme Court. I have come to the conclusion that the policy needs adaptation on a number of issues, not just to increase support therefore, but also to ensure consistency and coherence with European law."
Mr. Ballin said he planned to present full details of the proposed legislation to lawmakers before the end of the year, but added that the legislative process would now most likely be delayed.
The proposed legislation will focus on the harmonization of gambling regulations, introduction of a model distribution system for gaming proceeds, creation of an independent gaming authority outside of the Ministry of Justice, a review of gaming machine regulations and a ban on foreign online gaming providers.
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