This document summarizes a conference on eGaming regulation in the Netherlands. It discusses: 1. The current regulatory setup for gaming in the Netherlands, including monopolies for certain games and a prohibition on unlicensed remote gaming. 2. Recent developments in EU case law that have reduced member state discretion and increased requirements for transparency and non-discrimination in licensing. 3. Plans by the Dutch government to establish an independent gaming authority and issue licenses for remote gaming in a transparent manner in line with EU law. 4. Topics that were discussed at the conference, including taxation of eGaming, compliance and security issues, and the impact of recent changes in the Dutch government.

2. Welcome to the first conference
about eGaming in Holland

3. Welkom
Willem van Oort
CEO of GranViaOnline & Conference Organizer

4. Industry Group on LinkedIn
400 members to date
(Spain Group 2250 members)

7. Denemarken
Est. Tax Revenue 2012
Online Casino 19.8m E
Betting 30.5m E

8. Netherlands Interactive GGY (€m)

9. European KPIs
For the time being, the €6.9bn of gross win
generated by Europe’s eGaming industry during
2008 still represented only 7.7% of the
continent’s total gambling business up from
6.3% the previous year.

10. Legal and Regulatory: Introduction
Mr. Justin Franssen, Shareholder at VMWTaxand

11. Overview
• Current Regulatory Set-up
• Evolution of EU Case-law
• Catalysts for Change
• Plenary Debate – 7 Sept 2011; Motions & Emotions
• Gaming Authority
• Letter of State Secretary to Parliament – 4 May 2012
• Fall of the Government; a Stumbling Block?
• Looking to the Future

12. Current Regulatory Set-Up
• Prohibition on supplying unlicensed gaming under Dutch Betting and
Gaming Act (DBGA)
• No licences available for remote gaming
• Market largely supplied by monopolists
• Semi-permanent licences awarded in a non-transparent manner to
incumbents:
• Sports-betting
• Horserace betting
• Lotto
• Scratch-card
• Charity lotteries
• Monopoly for casino and state lottery
• Unlimited number of licences for slot machine gaming

13. Evolution of EU Case-Law
A Wide Margin of Discretion for Member States
•Schindler (C-275/92); sufficient degree of latitude to determine
what is required to protect players
•Läärä (C-124/97); assess provisions of national law in relation to
national objectives and intended level of protection
•Dickinger & Ömer (C-347/09); re-iterates wide discretion regarding
objectives and level of protection
•Placanica (C-338/04); policy of expansion permits increased offer
whilst maintaining restrictive measures

14. No Mutual Recognition
•Liga Portuguesa (C-42/07); MS where service received
can disregard licensing by MS where operator
established as licensing authorities are liable to
encounter difficulties in assessing professional qualities
and integrity of licensees!
•Dickinger & Ömer (C-347/09); MS can monitor an
economic activity carried out on its territory;
impossible if had to rely on checks by authorities of
another MS with systems beyond its control

15. Reduction in MS Competence
•Gambelli (C-243/01); restrictive measures only justifiable if
suitable for achieving objectives of limiting betting activities in a
consistent and systematic manner
•Placanica; unlawful exclusion from tender procedure denies
national authorities ability to sanction
•Markus Stoss (C-316/07);
– Introduction of horizontal consistency
– Monopoly justifiable only by a particularly high level of protection
•Ladbrokes (C-258/08);
– Will expanding authorised and regulated activities solve problem of
unlawful activities?
– National court must be satisfied expansion of offer is effectively
supervised by authorities to reconcile competing objectives

16. Limits on Activities of Incumbents
•Dickinger & Ömer;
– Distinguish between restrained commercial policy and an
expanionist commercial policy
•Marcus Stoss; advertising must be limited to what is
strictly necessary, no encouragement of consumers to
gamble, cannot trivialise gambling nor give it a positive
image due to fact revenues go to good causes or depict
major winnings

17. Transparency & Market Access
•Carmen Media (C-46/08); regulatory objectives
cannot render discretionary conduct which negates
free movement provisions
•Sporting Exchange (C-203/08); duty of transparency
applies to award/renewal of single licence subject to
strict control exception
•Costa & Cifone (C-72/10);
– Very difficult to favour existing licensees over new market
entrants in licence award procedure
– Exclusion from licence due to suspected criminal activities
requires judicial decision regarding a sufficiently serious
offence

18. Catalysts for Change
• Change of government Oct 2010 >> Policy Note of March
2011
– Regulate currently unregulated forms for which consumer demand
exists
• Do so more broadly than merely online poker
– Comply with EU law
• Allocate licenses in a consistent, transparent and non-discriminatory manner
– Council of State (Raad van State) 23 March 2011 held that De Lotto was not
subject to strict control; licence award process thus incompatible with EU law as
award process should have respected duty of transparency
• Horizontal consistency
– As per Carmen Media
• Liberalize the offline market in 2015
– Competition instead of monopolies

19. • One step back?
– Decision of the Supreme Court (Hoge Raad) in De Lotto v. Ladbrokes
24 February 2012
• Compatibility of monopoly model challenged; alleged policy of
controlled expansion conflicting with aim of preventing addiction and
consumer protection
• Held that monopoly model for sports-betting is compatible with EU
law
• Maintains injunction awarded against Ladbrokes requiring it to block
access for Dutch residents to its services
• Supreme Court merely reviewed earlier 2006 decision of Court of
Appeal
• Failed to follow guidance of CJEU in Ladbrokes
– Superseded by government policy and planned regulation of remote
gaming?

20. Plenary Debate – 7 Sept 2011;
Motions & Emotions
• Discussion regarding forthcoming Gaming Authority
• State Secretary under pressure to combat unlicensed remote
operators
• Motions passed, including
– Calling for the ‘Belgian model’ to be introduced
Financial transaction blocking (“blacklisting”)
• After hesitation now moving forward
– Excluding illegal operators from licences in the future
• Via an integrity test; exclude those illegally present on the market
• Danger of undermining objectives of reform if all operators unable to
obtain a licence

21. Gaming Authority
• Bill amending DBGA passed 20 December 2011
• Independent administrative regulatory body > operational on 1
April 2012
• Main functions
– Issue, revoke & enforce licences
– Supervise & enforce gaming regulations
– Act as a knowledge center
• Sanctions
– Administrative fines (€780,000 or 10% of turnover)
– Administrative orders
– Incremental penalty payments
– (Prosecution by the public prosecutor will remain an option)
• Maintain blacklist for PSP and ISP blocking measures (future
specific legal basis?)

22. Letter of State Secretary to
Parliament – 4 May 2012
• Indicated that the Supreme Court´s decision in De Lotto v.
Ladbrokes no longer relevant given plans to modernise
regulation
• Favours an “open system” for regulating remote gaming
backed by stringent conditions than a “closed system”
• Responds to motions from 7 September 2011
– Rejects call for the “Belgian model” to be introduced
– Financial transaction blocking (“blacklisting”)
• 40 operators served cease and desist letter; some withdrawn entirely, some ignored
and therefore listed and others have only withdrawn offer directed at the Netherlands
– Excluding illegal operators from licences in the future
• Those who persist in supplying unlawfully will be excluded from licences in due course

23. Fall of the Government: A
Stumbling Block?
• Cabinet fell on 23 April 2012 during negotiations on budget
cuts
• Lenteakkoord (VVD, CDA, D66, GroenLinks & ChristenUnie)
of 25 May 2012; decided to cancel proposed introducing of
licensing regime for online gambling
• Gambling declared controversial; dossier put on ice until after
national elections – 12 September 2012
• Non-compliance with EU law still remains regarding renewal
of semi-permanent licences
– Current licence for Nationale Postcode Loterij expires 31 December
2012

24. Looking to the Future
• Timeframe before gambling reform declared controversial:
– Q2 2012 – bill to amend DBGA
• Remote gambling licensing regime
• Transparent licence allocation procedure
• Legal basis for blocking measures
– 2013/2014 – remote gambling licences available
– 2015 – liberalisation of offline sector

25. Gaming, Sports & Entertainment
practice group
Justin Franssen Professor Marjan Olfers
marjan.olfers@vmwtaxand.nl
+ 31 20 301 66 48
justin.franssen@vmwtaxand.nl
Frank Tolboom Dr. Alan Littler
frank.tolboom@vmwtaxand.nl alan.littler@vmwtaxand.nl
Younes Moussaoui
younes.moussaoui@vmwtaxand.nl

26. The future of online regulation in
the Netherland?
Dr. Alan Littler, Gaming Lawyer at VMWTaxand
Mr. Justin Franssen, Shareholder at VMWTaxand
Mr. Morten Roende, CEO of Danish Online Gambling
Association
Mr. Eric van Vondelen, independent Gaming Advisor

27. www.doga.dk
DOGA is:
•‘working with the Danish regulator and legislators in
developing the regime for the industry to operate
within’
•‘providing a forum for the industry to share
knowledge, to agree policies, to share resources and to
adopt strategic responses to common challenges’

28. Licencees
41 operators licenced for betting and online casino –
including…
888 igame Tipico.com
bet365 IGT Interactive Unibet
Betfair Gaming Media Group
Betsson Ladbrokes
Betway Nordicbet
Bonnier Gaming pkr
bwin.party Pokerplex24
Cashpoint.com Pokerstars
Cryptologic Sportingbet
Danskespil Stanleybet

29. Danish Gambling Market 2009-2012
2012 2011 2009
GGR
Game types GGR DKK GGR Euro % GGR DKK Euro GGR DKK GGR Euro %
Betting 1135 152 15,1 n/a n/a 797 107 12,3
Online Casino 735 99 9,8 0 0 0 0 0,0
Gaming Machines 1840 247 24,5 1785 240 2034 273 31,5
Land-based Casino 320 43 4,3 320 43 335 45 5,2
Lotteries 3470 466 46,3 n/a n/a 3151 423 48,8
Bingo n/a n/a n/a n/a n/a 142 19 2,2
Total 7500 1007 100 6459 867 100

30. Coffee Break
We will be back at:
11:15 am

31. Compliance, Safety and Security
Mr. Roel van Rijsewijk, Deloitte Risk Services
Mr. Gregory Kuhlmey, Head of iGaming Compliance,
DICTAO
Mr. Ben Verhoeff, MD NMi (a TNO Company)

32. Compliance
Gambling
Anti Money Under Age
Awareness & Self
Laundering Gambling
Exclusion
Know Your
Customer
Identity Behaviour

33. Security
understanding of your
clients behaviours and
spending patterns
Account phising
scams
Organised Fraud
Trojan attacks
Rings
Online Gaming
Fraud
Unsafe network ...
Identity
Gnoming
theft
Current Financial
Climate

34. Lunch Break
We will be back at:
1:15 pm

35. Taxation of eGaming in a
regulated market
Mr. Frans Duynstee, Managing partner at VMW Taxand
Mr. Pedro Fernández, partner at Garrigues, Spain

36. General Overview Dutch Gaming
Tax payer Taxable base Exemption € Rate Loss
454 compensation
Dutch Casino resident gross earnings of the provider (that is the difference No 29% Yes
games provider between the stakes received and the prizes awarded to
the participants)
Slot machines in resident gross earnings of the provider (that is the difference No 29% Yes
the Netherlands provider between the stakes received and the prizes awarded to
(in Dutch: the participants)
exploita
nt)
Dutch Online resident gross earnings of the provider (that is the difference No 29% Yes
games provider between the stakes received and the prizes awarded to
the participants)
Other Dutch Dutch Prizes awarded to the Yes 29% No
games player participants. No off set
(the of the stakes.
resident
provider
has to
withhold
the
gaming
tax)
Non Dutch Online Player gross earnings of the player (that is the difference No 29% No
games between the prizes received and the stakes)
In practice no Dutch income tax is due by the player
Other Non-Dutch Player Prizes awarded to the Yes 29% No
games participants. No off set
of the stakes.

37. Bottlenecks Dutch Gaming
• Gaming tax lacks legal basis
• When is it a game of chance?
• Lack of clarity regarding domestic online games of chance
• Unacceptable administrative burden for the players
• Vagueness regarding definition online game of chance
• Difference in effective tax burden between domestic and
foreign casino and online game of chance
• No possibility to set off losses for players
• Level of tax rate
• Rigid scope of the exemption avoidance double taxation
• Vagueness on set off gaming tax against income tax and
corporate tax

38. Recent Case Law
• Is poker a game of chance or a game of skills? District Court of
The Hague, 09/867520-08 (criminal law) (Poker is a game of
skills) and the District Court of Leeuwarden, (AWB)09/512 (tax
and not published) Poker is a game of chance.
Appeals has been filed.
• The distinction between gaming tax regime Dutch live casino
games and EU casino games is against EU law (freedom of
services) District Court of Haarlem November 24, 2011, LJN:
BU6574, 11/1112. No Dutch gaming tax on EU live casino
winnings.
• The distinction between gaming tax regime Dutch online games
and EU online games is against EU law (freedom of services).
District Court of Haarlem May 23, 2012, AWB 11/4240 and AWB
11/4241 (not published yet).

39. Table of Contents
• Gaming duties in Spain
• Controversial issues
• Operators’ responsabilities
• VAT
• Other tax implications

40. Gaming Duties in Spain
Regulated in Law 13/2011 of May 27, regarding the
regulation of gaming activities
Type of games Taxable base Tax rate
Mutual Sports bettings Gross income: total amounts 22%
Mutual Horse bettings & other mutual dedicated to participate in the 15%
bettings game; as well as, any other
income directly derived from the
Raffles and contests gaming activity 20%
Benefic raffles 7%
Bettings against the house Net income: total amounts
Other games dedicated to participate in the
game less the winnings paid over 25%
to the players
Non banking bettings Comissions and any other income 25%
from services rendered in
connection to the gaming activity.
Random combination for advertising Amount of the prizes 10%

41. Controversial Issues
• Gaming tax
– Taxable base
• Jackpot
• Bonus Money wagers
• Multiple player
• etc.
– Tax payer: Co-operators, provider of gaming services
• Personal Income Tax of the Spanish player:
– Taxable base: gaming loss non deductible

42. Operator’s responsibilities
• Requirement of being up-to-date with its tax obligations. In
case of succession of the gaming activity, the operator would
be responsible for any outstanding tax obligations of the
previous operator in relation to said gaming activity.
• Tax obligations:
– Gaming duty, according to the regulations previous to Law
13/2011
– Gaming tax, according to the regulations previous to Law 13/2011
– Non resident income tax / Corporate income tax
– VAT
– Withholding obligations

43. VAT
General rule: Services are subject to VAT in the country of residence of the
recipient entity
Service Co
Advertising
services
EU/Non EU
Spain
Gaming Co
Gaming
service

44. VAT
Special rule: when according to the general rule the service is not located in the
Community, but its effective use is carried out in such territory, the service would be
subject to Spanish VAT (only applicable to a list of services, including advertising
services, consultancy, services provided electronically, etc.)
Service Co
Ancillary
services
Gaming Co
Non EU Country
Spain
Service Co Gaming
service

45. Other Tax Implications
Gaming Co /
Service Co
 Tax implications:
Gaming
- Non resident Income Tax
service - CIT
- Withholding obligations
Spain Withholding?
Software PE
services
Withholding?
Spanish
Gaming Co Gaming
service
Withholding

46. Contact
Pedro Fernández
E-mail: pedro.fernandez@garrigues.com
Don Cristián, 2 – 29007 Málaga (SPAIN)
Telf.: +34 95 207 55 25
Fax: +34 95 207 55 35

47. Responsible Gaming within an
online environment
Mr. Kees Boef, Managing Director, Burson Marsteller
Mr. Pieter Remmers, Founder at Assissa (Responsible
Gaming Consultancy and Training)

48. Short Break
We will be back at:
3:00 pm

49. Media and Marketing of online
betting and gaming
Mr. Willem van Oort, CEO Gran Via Online
Mr. Bob van Oosterhout, Triple Double
Mr. Reinout te Brake, CEO and Founder of IQU.com
and former strategist at Spill Games
Mr. Jasper Hoekert, Strategy Director Performance of
Omnicon

50. GOUDEN BAL

51. BELGIË - NEDERLAND

52. The Poker Session
Mr. Rolf Slotboom, Former Poker Pro and
Spokesperson at Dutch Poker Federation and Founding
Member of International Poker Federation
Mr. Thomas Bakker, Bakker & Davidowitz Consulting,
Former Poker Player, Mathematician, co-founder of
Subject: Poker and current Poker Security Consultant.
Mr. Kaj S. Emanuel, Young Democratic Party (D66)

53. Poker Wetgeving: spelersgeld
Huidige wetgeving:
•Sites gaan geregeld failliet
•Spelers de dupe

54. Poker Wetgeving: fraude
Fraude:
•Collusion
•Bots
Bots specifiek:
•Tientallen miljoenen per jaar
•Potentieel het einde van poker

55. Mobile Gaming:
NOT just another screen
Mr. Fredrik Kjell, Head of Product at ONGAME- Sweden
and the architect behind Ongames mobile strategy

56. FREDRIK KJELL
HEAD OF POKER
ONGAME
fredrik.kjell@ongame.com

57. AGENDA
• Regulation
• The success of mobile poker

58. Ongame poker
Since 2001
2008 2010 2012 2012

59. REGULATION
KEY LESSONS
• Work with the suppliers
• Bilateral agreements for technology
• Shared liquidity – local taxes
• High taxes destroy chance of success

60. MOBILE POKER

61. REVENUE

62. 4%
CASH GAME
REVENUES
8%
CASH GAME
REVENUES

63. HISTORY
• Mobile platform since 2005
• Competent product from start
• Low interest from players

64. TECHNOLOGY
Low bandwidth!
P5 POKER MOBILE
PLATFORM PROXY CLIENTS

65. APP OR WEB?
66% time spent on Native app
33% time spent on Web app WEB APP
+ Quality. Capabilities.
- Approval. Availability.

66. WE BELIEVE THAT
• 20% of revenue from mobile end of 2013
• Tablets are the new couch computers
• Recreational players use mobile devices

67. PRINCIPLES
• Interface aligned with terminal
• Experience according to user behaviour
• Waiting yields frustration

70. CHALLENGES
• Multiple platforms
• Regulatory compliance Available
• App Store approval
• Austria • Latvia
• Belgium • Lithuania
• Cyprus • Netherlands
• Czech Republic • Poland
• Denmark • Romania
• Estonia • Slovakia
• France • Slovenia
• Greece • Sweden
• Italy • Switzerland
• United Kingdom

71. FORWARD >>
• User experience improvements
• Multi tabling support
• Tournaments and lobby

72. Thank you!
Informal Drinks
In the bar