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Update: Holland Sets Online Poker, Online Gaming Tax at 40.85%Fri, Sep 12th, 2008 @ 12:00am This past Tuesday, September 9, the Dutch Senate passed a proposed bill to tax online games of chance, which online poker is considered, at a rate of 40.85%, which brings them in line with taxes on live casino table games. The taxes will also apply to domestic providers of games of chance provided by 'illegal' online operators, as well as for persons who win at foreign online gaming sites. Because of the fast succession of games available and the possibility to continue to stake earned winnings while playing games of chance online, the Senate considered online gaming to be comparable to regular table casino games.
Taxation of table casino games is already included in the current gaming taxation law. The Dutch Senate therefore decided to modify gaming taxation law and introduce a similar tax for games of chance offered online, with equivalent tariffs equal to 40.85%.
One central point discussed during Tuesday's debate was the moral question whether taxing illegal activities implies an approval of them. 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. Read Related Article:
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