Holland Casino fears for future

9th November 2007, Comments 0 comments

9 November 2007, HOOFDDORP - Holland Casino, the only company permitted to operate casinos in the Netherlands, is concerned for its future if the cabinet pushes through a dramatic increase to the tax on slot machines. The gaming company announced this on Friday.

9 November 2007

HOOFDDORP - Holland Casino, the only company permitted to operate casinos in the Netherlands, is concerned for its future if the cabinet pushes through a dramatic increase to the tax on slot machines. The gaming company announced this on Friday.

The cabinet wants to convert the 16-percent value added tax on the machines into a gaming tax of 40.85 percent. Parliament still has to express its view on the matter. Holland Casino says that the tax hike could put the continuity of the company in danger and prevent it from turning a profit.

Holland Casino currently books profits of EUR 80 to 90 million a year. A higher tax rate will result in losses of tens of millions each year, a spokesperson said. The current value of the company, roughly EUR 1 to 1.5 billion, will fully evaporate as a result.

Holland Casino also says that the tax hike will put pressure on the measures that casinos take to help gambling addicts. The casinos advise people who are addicted not to come to the venue any more, or even ban them from entering in some cases.

The spokesperson says that these measures cost the company EUR 100 million a year. "A profitable business can handle that. But it is doubtful whether you can continue with that if the tax rate is raised so high."

[Copyright Expatica News + ANP 2007]

Subject: Dutch news

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