Gambling is very popular in the Netherlands, Amsterdam being the country’s center of casino activities. Holland Casino which is currently the greatest gambling facility is owned by the State, but foreign operators have started to be encouraged to open casinos in the Netherlands. Gambling has been legal in the Netherlands since 1975 and currently the Government is considering distributing more gaming licenses to international casino operators. The main legislation regarding conducting gambling activities in the Netherlands is the Gaming Act which has undergone significant change. In order to set up a casino in the Netherlands one must obtain a gaming license with the Gaming Authority.
Our Dutch company formation consultants can offer information on the Gaming Law applicable in this country.
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Registering a gaming facility in the Netherlands
Foreign investors who want to set up casinos in the Netherlands can open several types of gaming facilities, among which:
- – sports betting;
- – online gaming operations;
- – slot machines;
- – games of chances;
- – bingo games;
- – race betting;
- – lotteries.
In order to register any of the types of casino facilities mentioned above, a local or foreign investor must first register a company with the Dutch Trade Register. The gaming operator can be incorporated as limited liability company, or any other type of structure acknowledged by the Dutch Gaming Authority. The same authority requires the business owner to:
- – submit identification papers upon registration;
- – submit information about the future business;
- – comply with the integrity and competence requirements;
- – to have a clean criminal record.
Additionally to setting up a business in the Netherlands, you must register your new company with local tax office. It is also a good idea to register for value added tax purposes as soon as you can so that you can deduct VAT from the startup costs of your firm. You can rely on our consultants for guidance on how to register a legal entity and obtain various tax benefits.
Foreign investors can also obtain gaming licenses in Curacao which belongs to the Netherlands.
Licensing requirements for Dutch casino operators
The gambling commission within the Gaming Authority may, in principle, issue an unlimited number of licenses for casino operators in the Netherlands. In order to obtain a casino license, an operator must comply with all the legal requirements as established by the Gaming Act. As a signatory member of the Treaty on the Functioning European Union (TFEU), the Gaming Authority may issue a Dutch casino license to any local and foreign company as long as they are incorporated as a public or private company. The Dutch company holding the casino license will be required to provide information and to appoint one or more officers to be in charge with the internal monitoring and compliance regulations. The estimative costs for obtaining an individual casino license were established between 45 and 50,000 euros. The casino will also be required to set up a responsible gambling fund which will be used to resolving issues pertaining to the remote gambling sector.
It should be noted that the gaming operators can only supply software to other facilities without any license.
Our company registration representatives in the Netherlands can offer more information on the licensing requirements applicable to casinos.
The gaming tax in the Netherlands
The tax rate for Dutch companies operating casinos was established at 20% and is currently pending approval from the EU Commission. If the proposal is rejected, the Dutch Gaming Authority will probably set a 29% gaming tax. Also, according to the Betting and Gaming Tax Act, prizes below 454 euros will be exempt from taxation in the Netherlands.
Dutch online gambling companies will be subject to 20% tax rate, but an additional 0.5% of the revenue will go to the responsible gambling fund and 1.5% to the Gaming Authority. A yearly administration fee must be paid by casinos in the Netherlands. This fee ranges between 1,000 and 50,000 euros. It is applied based on the number of machines the operator has.
Also, gaming operators in the Netherlands are not subject to the value added tax or any other indirect taxes.
For complete details about setting up a casino and registration fees, please contact our company incorporation agents in the Netherlands.