LiveScore Bet Exits Netherlands Market Amidst Soaring Taxes and Regulatory Challenges
LiveScore Group to Cease Gaming Operations in the Netherlands Amid Regulatory Changes
November 12, 2023
In an important development for the online gaming industry, LiveScore Group has announced that it will be shutting down its gaming operations in the Netherlands. The decision, reported today, comes in response to ongoing pressures exerted by the country’s evolving regulatory framework, particularly an impending tax increase that has rendered the market commercially unviable for the company.
Tax Increases Prompt Withdrawal
Starting January 1, 2024, the tax rate for Dutch online gaming operators will escalate from 30.5% to 34.2%, with a further increase to 37.8% scheduled for the following year. This substantial hike was enacted despite warnings from industry associations, including the Netherlands Online Gaming Association, that such changes would undermine the legitimacy of the regulated gaming sector. A study commissioned by the government from Atlas Partners echoed these concerns, indicating that the elevated tax burden could force licensees out of the market, as operators would need to take drastic measures to maintain profitability.
‘In response to these significant regulatory changes, it is with regret that we have made the difficult decision to exit LiveScore Bet from the Netherlands,’ said Sam Sadi, CEO of LiveScore Group. ‘Unfortunately, the planned tax increase means that this market is no longer viable commercially.’
Impact of Regulatory Environment
LiveScore Bet was one of the pioneering platforms that entered the Netherlands igaming market during its recent liberalization in 2021. However, it marks the second exit from the initial wave of entrants, following the withdrawal of Flutter Entertainment’s Tombola. The shift reflects a broader trend, as operators grapple with increasingly challenging conditions shaped by a series of regulatory updates.
Since the implementation of the Netherlands Remote Gambling Act, operators have faced a slew of new requirements. These include mandatory deposit limits for players and real-time monitoring of gambling activity, which came into effect on October 1, 2023, as well as restrictions on advertising that have significantly curtailed promotion opportunities. There is also ongoing discussion about a potential ban on online slot games, further exacerbating uncertainty within the industry.
Despite the introduction of new regulations, lawmakers have recognized shortcomings in the existing framework. A recent review revealed that player protection standards were not achieving desired outcomes, indicating that further modifications to operational requirements are likely.
Timeline for Exit
LiveScore Bet has communicated its intentions to the Dutch regulator, de Kansspelautoriteit (KSA), and aims to officially cease operations on November 29, 2023. As part of this process, account registration has already been disabled, and players will not be able to make deposits starting November 25. However, they will still be able to place bets until the closure date. Remaining account balances will be refunded after operations are officially terminated.
Additionally, the company is currently engaged in confidential discussions with employees affected by the closure in the Netherlands.
Reflecting on the experience, Sadi expressed gratitude for the community that had formed since the launch in 2021. ‘We will greatly miss our relationship with them. We would like to thank our players, people, and partners for their support during our time in operation.’
Future Operations
While LiveScore Bet is withdrawing from the Dutch market, the company maintains its presence in other jurisdictions, including the UK, Ireland, and Nigeria, where it continues to operate. The strategic decision highlights the challenges faced by online gaming operators in navigating complex regulatory landscapes across different markets.
As the landscape for online gaming in the Netherlands continues to evolve, industry stakeholders are left to consider how ongoing regulatory changes will affect the future of the market and their operations within it.