The government’s most senior advisory body has criticised plans by the justice ministry to deregulate the internet gambling sector and break the state monopoly on internet gambling.

Currently, foreign firms are not supposed to target gamblers in the Netherlands, although the ban is widely ignored.  The government hopes to open the market to applicants for a licence to offer online poker, casino games and sports betting next year.

The government hopes this will encourage 80% of gamblers who currently use illegal sites to switch to the licenced sector, the Volkskrant reports.

Evidence

However, the Council of State, which makes recommendations on all draft legislation, said it has not been given enough evidence that gamblers will make the switch.

The council pointed to the ‘international character of online gambling and the limited effect of rules which only have an impact on the Netherlands.’

Nor is it certain the measure will meet European guidelines on online gambling, the council said. It also questioned the ‘beneficial’ tax rate being proposed for online gambling.

The proceeds of online gambling will be subject to a lower tax rate of 20%, compared with the 29% Holland Casino and arcade owners have to pay.

In its statement, the council has urged the government to reconsider its proposals.