www.euroslot-online.com NETHERLANDS
Population 16.8m Under 15 2.9m Aged 15-64 11.4m Urban population 83 percent Major cities Amsterdam (780,000), Rotterdam (610,000), The Hague (490,000), others GDP per capita $40,300 Business climate Stability and growth were long the foremost characteristics of the Dutch economy, with little unemployment and ample inward investment. The economic downturn was certainly felt in the Netherlands, but recovery has been encouraging – at press time in August 2011 the Dutch unemployment rate was the lowest in the eurozone – and the country remains an easy and highly modernised one in which to do business.
The Dutch industry appears to be fighting a losing battle against oppressive taxation, though there are signs of liberalisation with a new government, so all hope is not yet given up. The optimism comes because the ban on online gaming in Holland is in the process of being overturned, as the government sees the potential for further tax generation. The state secretary of security and justice, Fredrik Teeven, has said that proceeds from lotteries and online games of chance will be spent on sports, including facilities and improvements to safety. The Dutch Gaming Machine Association (VAN) has challenged the validity of the new gambling tax in a number of legal procedures, meeting defeat every time to date; the organisation has appealed to a higher court, although the outcome of this will not be known until late 2011.
Tax and the smoking ban The gaming industry in the Netherlands has, as in so many
NETHERLANDS MARKET REPORT
countries, been hit by huge taxation, to the extent that many operators have been forced out of business. The previous taxation – 15.97 percent VAT on the cash box – has been replaced with a 29 percent gambling tax, which combined with the smoking ban which arrived in 2008 has made trading conditions extremely difficult. The smoking ban has been partially overturned, with small
owner-operated bars of less than 70 square metres exempted as long as they do not employ any staff; this means that around 3000 of the 5500 bars in the Netherlands escape the ban. But it still applies to gaming venues. This has proved devastating for Holland Casino, the country’s casino monopoly, which saw half a million fewer customers come through its doors in the post-ban 12 months, with profits dropping by more than 80 percent. It is estimated that between the gambling tax and the smoking ban, turnover in Dutch arcades has dropped by 16 percent and in “single sites” (see below) by 32 percent – these figures are from the second and third quarters of 2008, either side of the smoking ban’s implementation.
Installations In 2008, the year of transition, there were almost 38,000
AWP machines in Holland, split between 273 arcades and 16,900 “single site” venues. These are limited to two machines (despite their name), while the average number of machines in arcades was around 56. These 38,000 AWPs accounted for turnover of around ¤517m. By 2010, the number of machines had dropped by around
2,000, leaving 36,045 machines in 270 arcades and 14,714 “single site” venues. It is reasonable to conclude that the bulk of the 2000 machines that disappeared had been in single sites (bars, restaurants). The true effect of heavy taxation and the smoking ban will
probably only be fully realised when the replacement time of these slots comes around; the next couple of years will be telling. But one thing is for sure – without policy change, the Dutch market is in for hard times.
SEPTEMBER 2011
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