Judge makes a decision: Fast payoutgambling tax

Den Bosch | January 10, 2019

The Court of Appeal in Den Bosch has positive news for Dutch players who have had money paid out since 2012 via Poker Stars. They do not have to pay gambling tax (A 29%) about income to the Dutch state. The court's decision is very favorable, also for online Casino players. When you make a profit at a gambling site located in EU, this falls under the EU legislative principle of free movement of capital, goods, services and people. The court's decision costs the tax authorities millions of $in tax claims, but therefore also has considerable consequences for the future. This ruling has created a case law that is very favorable for all participants in foreign games of chance in the USA, from poker until Sports betting to bingo.

The Dutch state is missing millions of $in tax money from Dutch players over the past years, and over the future years.

Judgment of the judge surprisingly for tens of thousands of poker players in the USA
Players who have had profits paid out through online gambling sites located outside the EU are obliged to pay 29 percent gambling tax. However, the big question was whether PokerStars is located inside or outside the EU. The Tax and Customs Administration stated that PokerStars is located on the island of Isle of Man, which is technically outside the EU. The poker players believe that PokerStars is located in Malta, so within the EU.

The Court of Appeal has decided that PokerStars is located in Malta and that Dutch players do not have to pay a gambling tax on profits achieved. Players in the USA can be in their right since there is a freedom of service traffic within the EU. So Pepijn Le Heux lawyer succeeded after a long procedure. He represents around 100 poker players where it concerns serious amounts. However, it is difficult to estimate how much money it is, since there is also a large group of players who have had smaller amounts paid out and are therefore not in the picture.

The OM can still go to the Supreme Court
The small group of players who have paid gambling tax in the past on income generated via PokerStars is entitled to reimbursement of this amount. The tax authorities have the option to go to the Supreme Court in cassation. Whether they are going to do this is difficult to predict. On the website of the Public Prosecution Service you can read that the tax authorities are currently considering the ruling.

> Zie ook het volledige nieuwsbericht van accountancyvanmorgen.nl and the full statement on rechtspraak.nl

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