In the Netherlands, casinos and gamblers who win must pay a gambling tax in the Netherlands. Gambling organisations must pay for the differences between the bets that were received and the payout of the money prize. When gamblers play against each other and receive a provision, tax is still required to be paid.
Winners of national online games are exempt from this tax. If a national game is not a casino game, slot machine or online game. So, the entire amount cannot be kept. International winners who reside in the Netherlands whether they played in person or at top online NL casinos, are required to pay taxes on their money prize.
The Netherlands Gambling Tax – What You Need to Know
Monopolies were established to reduce competition between operators and to prevent the excessive consumption of gambling services. There are no limits on the number of remote gambling licences available, but some strict regulatory requirements were introduced. In case a gambler has won after playing a casino game, they must pay for the positive monthly return.
There are several rules for companies who organise games of chance in the Netherlands which are quite different from the gambling taxation in the UK. Enterprises need to pay taxes for the organisation of national games of chance and the organisation of international online games.
Although the prize winner is the taxpayer, it is the organiser of the game who deducts the taxes on the gross value of the prize. The organisation pays the taxes for the winner, and as a result, the net price is paid out to the player. When the prize does not contain cash but a product, the company is allowed to pay the Netherlands gambling tax itself.
Reforms Carried out Over Time
The NL gambling law permits some gambling products to be offered according to the Act, which was introduced in 1964 and has been subject to changes ever since. The Act says that it is forbidden to offer unlicensed games of chance in the Netherlands. Nonetheless, there are forms of gambling products that are exempt from this requirement.
After the reforms in 2008, the Gaming and Betting Tax Act established that tax is applicable on winnings from locally unlicensed international remote gambling. Thus, players are obliged to pay tax at a rate of 29% on gross earnings per month from operators outside of the Netherlands. However, some more changes were to come.
Before 2018, the tax rate was 29%. Nevertheless, it increased a 1.1% for the land-based licenced establishments and returned to 29% six months after the reforms to the Act in 2021. Apart from this, there is an extra charge of 1.75% that applies to online operators. This is quite different from land-based companies, find out why in the next extract.
Land-Based Gambling Establishments – What Must They Pay?
Slot machine operators must also pay taxes. The slot machines should be placed in the Netherlands and all of them must have special stickers with the operator’s details on them. VAT is charged at 21% and corporation tax is split in two. If the taxable amount is less than €200,000, a rate of 16.5% will apply.
On the other hand, the tax rate will be 25% for amounts of €200,000 or over. Tax on NL gambling winnings is based upon gross revenue for slots and casino gambling. For all other land-based licensed offers, the prize constitutes the tax base. In contrast to all the land-based markets, the slot sector is the only one to which no cap on the number of licences applies.
An unlimited number of licences for non-incidental games of chance are available. Traditionally, only four licences were awarded under this condition. Nonetheless, this was challenged in legal proceedings, also following the Sporting Exchange line of reasoning. All in all, games licensed on this basis must be for the public good, with 40% of revenues destined for good causes.
Remote Gambling– Netherlands Online Gambling Tax and More
NL tax on gambling is only due on prizes greater than €449. This pushes down the effective tax rate to be paid by some of the beneficiaries to single digits. However, sports and horse-race betting will be removed from this tax-free threshold given the introduction of the Netherlands online gambling tax licensing rules.
Online gambling licences are available for casino games, sports, and horse races. There are no limits on the number of licences, and operators are not required to have land-based operations, nor a land-based presence in the Netherlands in order to be eligible. Those with a Dutch online gambling licence must have strict measures to tackle cheating.
Online operators are restricted in the type of payment options that they can use for transactions with their players. The payment methods must not be anonymous and use the same name as the player’s account holder. Also, it must be issued by an EU-licensed credit institution, payment service provider or electronic money institution.
NL gamblers who visit international casinos must pay a gambling tax in the Netherlands. If the player has already paid taxes on winnings abroad, then it’s not necessary to pay again. Keep in ming that if taxes are avoided, the Netherlands Online Gambling Association is due to take legal action.
Summary – Local VS Abroad
Tax rules change depending on the type of gambling business, where it is based, and the games it offers. As an independent individual who wants to enjoy gambling taxes must also be paid. However, the way they are paid differs. Have a look at the table below to make these points clear.
| 🏠 In the Netherlands |
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| ✈️ Abroad |
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| 🧍 Individual |
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As you see in the table above, we have summarised the essential aspects to understand how NL gambling taxes work point after point. It is not an easy task, but we believe that by following this simplified guide, it will be much easier to understand the tax-paying process for Dutch players who play locally, abroad, land-based and/or online.
FAQs About the Gambling Tax in the Netherlands
Our article about the Netherlands gambling tax has come to an end. We have created our frequently asked questions in case you have been left with a doubt. The answers will jump to different extracts of this blog for you to get soaked in the information you are most interested in.