LiveScore Bet Exits Netherlands Market: A Response to Soaring Tax Hikes and Stricter Regulations
LiveScore Group Closes Gaming Operations in the Netherlands Due to Regulatory Changes
Date: 12 November 2023
In a significant move that underscores the changing landscape of online gambling in Europe, LiveScore Group has announced the closure of its gaming operations in the Netherlands. The decision follows a series of regulatory changes and an impending tax hike that the company deems unsustainable for its business model.
Rising Tax Rates Prompt Strategic Withdrawal
Starting from January 1, 2024, the tax imposed on gross gaming revenue for online gambling operators in the Netherlands will increase from 30.5% to 34.2%, with a further increase to 37.8% scheduled for January 2025. This substantial rise in taxation has placed immense pressure on gaming operators, leading to LiveScore Bet’s decision to exit the market.
Sam Sadi, Chief Executive of LiveScore Group, stated, “On behalf of all LiveScore Malta directors, it is with regret that we have made the difficult decision to exit LiveScore Bet from the Netherlands. Unfortunately, the planned tax increase means that this market is no longer viable commercially.”
Industry Concerns Ignored
Despite warnings from industry stakeholders, including the Netherlands Online Gaming Association and government-commissioned research by Atlas Partners, the Dutch government has proceeded with the tax changes. These organizations argued that the new tax structure could undermine the viability of the legal gambling sector, forcing operators to re-evaluate their positions and potentially exit the market. Holland Casino, the state-owned monopoly operator, has also expressed concerns that these tax rates may render their operations unprofitable.
Alan Littler, a Dutch gaming lawyer, highlighted the industry’s frustrations, referring to the government’s approach as “deaf” to the concerns raised. A recent review of the Netherlands Remote Gambling Act has indicated that it is not achieving its original goals of player protection, further complicating the operational environment for gaming companies.
Timeline for Exit
LiveScore Bet has informed the Dutch gambling regulator, de Kansspelautoriteit (KSA), of its intention to surrender its license. The company plans to officially cease operations on November 29, 2023. Starting the week of November 25, players will no longer be able to deposit funds, although they will still be able to place bets until the closure date. Remaining balances will be refunded to players after the operation concludes.
In a statement reflecting on the closure, Sadi expressed gratitude for the community built since LiveScore Bet’s launch in 2021. “We will greatly miss our relationship with them. We would like to thank our players, people, and partners during our time in operation,” he noted.
Continued Operations Elsewhere
Despite withdrawing from the Netherlands market, LiveScore Bet continues to maintain operations in other jurisdictions, including the United Kingdom, Ireland, and Nigeria. The company’s experience in the Netherlands highlights the increasingly complex regulatory challenges facing online gambling operators in Europe, raising questions about the future landscape of the industry as policies continue to evolve.
As regulatory pressures mount, the gaming sector may witness further changes and potential withdrawals, which could reshape the competitive environment in the online gaming landscape.