The Bottom Line
- Bonuses are Taxable: Online gambling companies operating in the Netherlands must pay gambling tax on the full nominal value of promotional bonuses, such as free spins and deposit matches.
- “Stakes” Redefined: These bonuses are legally considered “received stakes” and are included in the gross gaming result—the basis for the tax calculation—even though the operator receives no direct cash payment from the player.
- Marketing Strategy Impact: This ruling solidifies a significant operational cost. Companies must now fully account for gambling tax on bonus-heavy marketing campaigns, impacting their profitability and customer acquisition models.
The Details
In a landmark decision for the regulated Dutch online gambling market, the District Court of Zeeland-West-Brabant has clarified a critical tax question: are promotional bonuses taxable? A Malta-based operator of a licensed Dutch online casino argued that it had overpaid millions in gambling tax. The company contended that bonuses and free spins, which players cannot withdraw as cash and can only use to play, should not be classified as “received stakes.” Their position was that since no money changes hands for these promotional bets, they should fall outside the tax base, which is calculated on the difference between stakes received and prizes paid out (the gross gaming result).
The Court disagreed, siding firmly with the Dutch Tax Authority. While acknowledging that the term “received stakes” in the tax law isn’t explicitly defined, the judges turned to the legislative history behind the 2021 Remote Gambling Act. The preparatory documents revealed a clear intention from lawmakers: to include promotional bonuses in the tax base. The rationale was to prevent a tax incentive that could encourage operators to offer unlimited bonuses, a practice seen as a risk to responsible gaming. The Court confirmed that the “stake” is the act of playing, regardless of whether it’s funded by the player’s cash or a company-issued bonus.
Finally, the Court dismissed the operator’s other arguments, including claims that the bonuses have zero economic value and that this tax treatment violates the principle of equality by creating an unfair disadvantage compared to land-based casinos. The judges reasoned that the nominal value of the bonus (e.g., a €1 free spin) is its taxable value. Furthermore, they held that the online market, with its heavy reliance on digital bonuses, is fundamentally different from the land-based sector, justifying the specific tax rules. This ruling provides crucial legal certainty and forces all licensed operators to treat bonuses not just as a marketing expense, but as a taxable event that directly impacts their bottom line.
Source
Rechtbank Zeeland-West-Brabant
