As expected, the online casino is extremely popular during this corona crisis. But why does their legalization take so long in the Netherlands?
The Netherlands is the sixth-largest economy in the EU, yet the budget is in the red. The government is trying to fill this up with the legalization of online casinos. Unlike Belgium or the United Kingdom, these are still illegal here, which means we miss out on a great deal of taxes.
Many users choose websites in tax havens like Malta or Cyprus to play with their money. This while the Netherlands has been working for a long time to make them legal here too. We will explain in a moment why this takes such a long time. In addition, we look at how the online casino reacts to the corona pandemic and what the future may bring.
A brief history of online gambling in the Netherlands
In 2012, they started to talk about the legalization of gambling in the Netherlands. PVDA and VVD were in favor of this regulation and set the goal for the new cabinet to have the law ready by 2015. Ultimately, it will not be until 2016 that the House of Representatives approves the bill.
Then we have to wait until 2019 for the vote of the Senate. The Senate also agrees with the proposal, so work can begin in practice. Tax revenues from online casinos will already be included in the budget from mid-2020. But the pandemic has further delayed the entry into force of the Games of Chance Act.
Now it looks like the law will not come into effect until mid-2021 and then it will have to wait another six months before all licenses have been issued to online casinos. Because of this, the state has probably lost a lot of taxes, as we explain to you in the next point. Nevertheless, the KSA (Gaming Authority) has been entitled to issue fines since 2019. So we will not be left empty-handed.
Impact of the Corona crisis on online gambling
In 2020, the COVID-19 pandemic forced casinos to close temporarily. The online gambling sites have wanted to take advantage of this by increasing their marketing. Not only have many regular casino visitors made the switch, but this was also the time to attract more new customers.
The Dutch were offered to stay at home, which ensures that they had more time to kill. These are the consumers who want to attract the illegal gambling sites. If you have too much time and are short of money, an online casino sounds quite attractive
However, as we discussed in the previous point, these gambling sites are not yet legal in the Netherlands. There are no permits yet and it goes so far as to prohibit advertising for these services.
Because mistakes are sometimes made against this, the websites receive a hefty fine from the KSA. Above this, they will not obtain a permit until two years after the violation. For example, there are already countless digital gambling providers that will not get a license when they are finally available.
Future of online casinos
Even during the lockdown, there was already significant growth in the number of users of these online platforms. Research has shown that around 1.2 million Dutch people gamble illegally via the web every year.
In fact, 12% more is spent at online casinos in four years. This growth is almost twice the growth of the Dutch economy during the same years. So the future looks very promising. Once the permits are ready, real growth is expected.
This is not to say that they are trying to encourage everyone to gamble. On the contrary, the law has been drawn up in such a way that this addiction must be prevented. Every website must have a person who is always ready to prevent. In addition, users are temporarily put on hold when addiction is noticed.
As you can see, exciting times are ahead for online casinos. Soon, the Netherlands, like Belgium, the United Kingdom, and many other countries, will be open to online gambling. With the necessary measures to keep it safe and sustainable.
