Björn Fuchs is no unknown name in the world of online gambling. As chairman of VNLOK, the industry association for legal online gambling providers, he knows exactly what is going on. He is also Chief Digital Officer at the Janshen-Hahnraths Group, the company behind Fair Play Online.
He has years of experience in the media and gambling sector. And he is now sounding the alarm: he believes the planned increase in gambling tax is a major risk to the market.
Gaming tax rises from 34.2% to 37.8%
The Dutch government wants to increase the gaming tax to 37.8%. The intention is simple: more tax revenue. But according to Fuchs, that is not how it works. The increase actually causes legal companies to struggle.
And players are then more likely to choose illegal gambling sites, where no taxes are paid and no rules apply.
Illegal operators profit, legal operators lose
Fuchs explains that the pressure on legal operators is already high. There are many rules, strict supervision and now, therefore, heavier taxation. At the same time, illegal sites are easy to find, and often more attractive to players because there are fewer restrictions.
According to recent figures, half of all play money already goes to illegal providers. That trend will get worse if taxes go up.
Germany as a bugbear for the Netherlands
Fuchs points to Germany as an example. Similar measures have been introduced there. The result? More than 80% of gaming money flows into the illegal market there. In the Netherlands, that is now around 50%.
But according to Fuchs, that is already a slippery slope. The more pressure there is on the legal sector, the faster that percentage rises.
Players are worse off at illegal sites
The consequences are not only financial. Players are worse off at illegal providers. There is no supervision, no customer service, no protection. Those who get into trouble there are on their own. According to Fuchs, it is the government’s job to protect players. They will only succeed if they choose legal platforms.
Less revenue due to higher tax?
A higher tax should make money, you would think. But according to Fuchs, that math is not correct. If legal providers make less profit or even quit, the tax revenue actually drops.
After all, illegal providers do not pay anything. So the increase could lead to less money in the treasury, not more.
The solution: freeze and investigate properly first
According to Fuchs, the only sensible decision is to temporarily halt the increase. First, the impact of the earlier increase to 34.2% needs to be clarified.
The government has promised to evaluate that in the interim. Fuchs insists on that promise. Only with hard figures can you make good decisions.
Political debate often driven by sentiment, not facts
Fuchs has frequent contact with politicians and policymakers. What strikes him? The debate is often driven by incidents and emotion. Headlines determine the picture. But that is dangerous, he thinks. Especially now, we need to look at facts and what works. Otherwise, policy will be based on panic, not logic.
VNLOK wants to play a constructive role
As chairman of VNLOK, Fuchs actually wants to think along. Not to work against, but to work together. He wants the industry to take responsibility, regulate itself and be open to rules that really work.
But then the government must also listen to the people who work with this market every day.
Increased pressure affects entire chain: from casino to charity
The increase in gambling tax does not only affect online providers. Physical gaming halls, lotteries and even the state-owned casino are also feeling the pressure.
With lotteries, less revenue also means less money going to charities. According to Fuchs, politicians underestimate how much this tax affects the whole chain.
The risk of wait-and-see policy
According to Fuchs, policy should not just react, but look ahead. Waiting until the problems are bigger is unwise. If the legal supply shrinks, players will automatically look for alternatives. Those abound. But without control, without supervision, without protection.
Fuchs argues for realistic approach
Instead of punishing and taxing, Fuchs argues for a realistic view of the sector. Gambling is there, and will always be there. Then you better regulate it properly.
With clear rules, clear limits and space to enable responsible supply. That ensures more safety and ultimately more stability.
Kansspelautoriteit as partner, not enemy
Fuchs also sees a role for the Kansspelautoriteit. He notices that a new wind is blowing there. More eye for practicability, more room for discussion. That is encouraging. Because only if the regulator and the sector work together can you really reduce illegal providers.
No room for clever tricks or grey zones
As far as Fuchs is concerned, there is also no room for parties trying to circumvent the rules. Whether they are shadowy advertisements or fake companies: that undermines trust. He therefore calls on fellow providers to take responsibility and abide by the rules.
The market is already heavily burdened: any more pressure is irresponsible
The online gambling market is young but has already had a lot to endure. The rules are strict, supervision is keen, and social pressure is high. Even more tax on top of that skews the playing field.
Fuchs calls for balance. A market that works for providers, players and government.
A call for reason and cooperation
Fuchs ends his speech with an appeal. To politicians, regulators and colleagues in the industry. Let’s work together for a safe, fair and sustainable market.
Where there is room for fun, but also for responsibility. And where policy is not driven by fear, but by insight.
Time is running out: make policy based on facts
The planned tax increase is coming. But according to Fuchs, it is not yet too late. The numbers are there. The signals are clear.
Now it is up to politicians to make sensible choices. Choices that protect the legal market, keep players safe and secure tax revenues. Before things really go wrong.