Online gambling should be subject to the same rates of tax as gambling in casinos, when internet-based games of chance are legalised in the Netherlands, coalition MPs say.

The government was planning to introduce a lower tax rate of 20% for online gambling in an effort to stop people using unlicenced sites. The government’s casino monopoly Holland Casino and arcade owners have to pay 29% tax on the proceeds of gambling.

However, MPs from the two ruling parties now say there should be a uniform tariff of 29% which should be reduced to 25% three years after online gambling is legalised.

Illegal gambling

The government hopes its new legislation on onling gambling will come into effect this summer although there are doubts this will happen. The current laws date back 50 years, before the advent of internet.

The Telegraaf said in April last year more than 200 companies have expressed an interest in a licence to offer online gambling in the Netherlands. Gambling regulator Ksa estimates people in the Netherlands spend between €250m and €800m on illegal online gambling a year.

The draft proposals also state the licence holders will have to contribute to a special fund to help gambling addicts. In addition, there will be a national register of players who break self-imposed limits and who will be banned from playing.