Netherlands

In September 2006, the Dutch Supreme Court approved a measure allowing the Holland Casino, a major government-owned, land-based casino operator, to offer Internet casino gaming as an extension of its land-based services. This form of Internet gaming is limited to traditional casino games and is available only to residents of Holland. Like many European Internet gambling models, the Netherlands does not allow its citizens to gamble online through foreign gambling operators.

In 2007, De Lotto and Holland Casino were under investigation by the European Union for holding an alleged monopoly on the online gaming market in the Netherlands. In February 2008, the European Commission gave the Netherlands a final warning before court action would be taken over their restrictions in the gambling market.

The online casino initially launched by Holland Casino is no longer operational. Holland Casino was in negotiations with online gaming software provider Cryptologic in 2007 in hopes of relaunching the online gambling site. Their request for a Dutch gambling license was declined in April 2008. The Senate voted against an amendment which would have allowed Holland Casinos to operate online gambling on a three-year experimental basis. The Dutch parliament also did not pass a vote on a new bill that proposed to regulate Internet gambling and to some extent allow online gambling.

In 2010, UK-licensed operators Betfair and Ladbrokes challenged the online gaming ban after they were banned for not having a license issued by the Dutch government. The European Court of Justice ruled against them, stating that countries will be allowed to prohibit online gambling if the main reason is to combat fraud and crime. The Secretary General of the European Betting and Gaming Association does not feel the strict features to comply with are not being met in the context of the Dutch legislation. The national judge is to assess the consistency of the Dutch gambling policy before making a final decision.

As of 2010, Dutch citizens are allowed to gamble but only under the state monopoly Holland Casino. The government has yet to license any online casinos, leaving no legal Dutch online gambling operations.

Based on the Dutch Justice Ministry’s August 2010 report suggesting that permits be issued for online poker sites (not sportsbooks, casinos, or other online gaming), the government is now looking into marketing Internet gambling licenses to foreign operators. If approved, licensees will most likely register with Dutch tax authorities. The current gambling tax in the Netherlands is 29%

Dutch lawmakers are in the process of finalizing a draft of the future Online Gaming Bill, which should be submitted to the House of Representatives by late March 2011. Tax revenue generated from legalized online gambling in the Netherlands is projected to be between EUR 100 million and EUR 270 million during the first year.