Online gambling company Gaming Innovation Group has joined the rapidly growing group of international iGaming operators responding to the new set of rules the Dutch Gaming Authority introduced last week.
GIG asked its Dutch-targeting affiliates that have been referring players to its casino brands from .nl websites to stop doing so in the wake of the new regime. The company currently operates the Guts, Rizk, Kaboo, Thrills, Betspin, and Rizk online gaming brands.
The operator further noted that affiliates with both .nl and other domain extensions can no longer target Dutch players with any images and visual elements that feature windmills, tulips, and other objects that are typically associated with the Netherlands. According to GIG’s message, affiliates also cannot promote its brands through various channels like email lists, social media, SMS, etc. in Dutch language.
The gambling operator said that it will certainly pursue a license from the Dutch Gaming Authority, once the local market is re-regulated in a manner that would allow international gaming and betting companies to provide licensed operations in a regulated environment.
It was on June 1 when the new set of rules took effect in the Netherlands. The local gambling regulator, Kansspelautoriteit, announced its decision to implement new regulations in relation to the provision of iGaming services quite surprisingly, leaving operators with limited time for preparation. As a result, multiple online gaming companies, mainly ones licensed by the regulators of Malta, Gibraltar, and similar other jurisdictions, confirmed their exit from the market and pledged compliance with the new rules.
The creation of a regulated online gambling environment has been discussed by Dutch lawmakers for several years now. The country’s government made particularly important progress last June, when an iGaming bill passed an important House vote. The proposed legislation aims to open the local market to international operations. The bill cannot take effect as a law before a positive vote from the Dutch Senate. However, Senate members have failed to take action over the past year.
Although the Dutch iGaming market is one believed to be holding great potential, its regulation may not attract that big interest. Under the discussed bill, Dutch-facing operators will be taxed at 29% on gross gaming revenue. The tax rate is quite high, particularly when compared to ones in other European countries.
The 29% tax is the same as the one imposed to the country’s land-based casinos and is intended to protect Holland Casino, the current Dutch monopoly operator, from suffering from too intense competition, once its privatization is finalized. However, tax rate of this size will hit foreign operators’ margins and they will certainly think twice before entering the market, once it is regulated.
