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Dutch State Condemned to Pay €1,3 Million to Gambling Operator

Dutch State Condemned to Pay €1,3 Million to Gambling Operator

A recent ruling from the Dutch Appeals Court in the Hague, the Netherlands, decided that the Dutch State will have to pay €1,3 million to an operator of gambling machines.

A recent ruling from the Dutch Appeals Court in the Hague, the Netherlands, decided that the Dutch State will have to pay €1,3 million to an operator of gambling machines to cover the damages created by the introduction of a Dutch Gaming Tax.

According to the Court, the State "shall be held liable for rigorously introducing a Dutch Gaming Tax without properly informing and preparing Dutch gaming operators for the heavy tax burden they would be faced with."

The Dutch authorities believe that the time frame chosen for the introduction of the tax did caused significant losses to the operators already active in the country since it did not allow them to rethink their strategies and adjust their plans t.o the new business conditions

Although the Dutch tax authorities have initially claimed that the decline in revenue suffered by the operators was due to external causes as "the financial crisis and changes in consumer behaviour," the Appeals Court decided to reject those arguments ordering a compensation for the operator represented by gaming attorney Bas Jongmans of the Gaming Legal Group.

"In 2012, the Amsterdam Higher Court already ruled that the Dutch Gaming Tax presented a unacceptable high tax burden on a legislative scale and was therefore in breach with the right to unobstructed enjoyment of property in accordance with the First Protocol with the European Human Rights Treaty," Jongmans explained.

"We were of course disappointed when the Dutch Supreme Court did not follow this ruling. However, the Supreme Court did order The Hague Appeals Court in 2014 to investigate the personal circumstances of my client. Fortunately, the Appeals Court now confirms that the tax burden in the personal situation of my client, has indeed been excessive."

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