LiveScore Bet prepares to pull out of Netherlands igaming market
Plans to increase the tax rate for Netherlands igaming operators proved to be breaking point for LiveScore Bet. From 1 January next year the 30.5% tax on gross gaming revenue jumps to 34.2%, then to 37.8% a year later.
The tax hike was pushed through despite industry associations such as the Netherlands Online Gaming Association warning it would undermine the legal industry.
Even government-commissioned research from Atlas Partners warned it could force licensees from the market, saying operators “will have to take measures to stay out of the red”. Land-based monopoly Holland Casino has warned that current operations will run at a loss once the tax is implemented.
However the government appears “deaf” to the industry’s concerns, Dutch gaming lawyer Alan Littler told iGB in September.
“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,” LiveScore Group chief executive Sam Sadi said in a statement.
“Unfortunately, the planned tax increase means that this market is no longer viable commercially.”
LiveScore Bet latest withdrawal in the wake of regulatory ramp-up
While LiveScore Bet was among the first 10 entrants to the Netherlands igaming market in 2021, it is the second company from that first wave to pull out, after Flutter Entertainment’s Tombola. The withdrawals come as a stream of regulatory changes make operating conditions increasingly challenging.
Major development work is now required to implement deposit limits and real-time monitoring of player activity from 1 October. Marketing is significantly curtailed through a ban on ‘untargeted’ advertising implemented in July last year. The prospect of an online slot ban remains a very real risk.
Despite this drip-feed of new restrictions, lawmakers still don’t see the Netherlands Remote Gambling Act as fulfilling its original policy goals. A review of the legislation published last week concluded player protection wasn’t at the desired standard, paving the way for additional changes to operating conditions.
Speaking to iGB in July this year, Sadi pointed out overregulation was already pushing single-digit market share licensees out of the market. He went as far as admitting LiveScore Bet may not have entered under the current regulatory framework and hinted at plans for a withdrawal.
“Making decisions to enter a market rely on complex models towards investment and, at some point, reaching profitability,” Sadi said at the time. “If the fundamentals change over time, you need to revisit and refinance your business and question whether there is long-term viability in the market.”
What is the timescale for LiveScore Bet withdrawing from the Netherlands market?
LiveScore Bet has informed Dutch regulator de Kansspelautoriteit (KSA) that it will relinquish its licence and it aims to formally cease operations on 29 November.
Account registration is deactivated and from the week commencing 25 November, players will no longer be able to deposit on the site. Players can still place bets until 29 November, at which point any remaining balances are to be refunded.
A confidential consultation process is also under way with employees affected by the Dutch withdrawal, LiveScore said.
“Since our launch in 2021 we have built a brilliant community of engaged customers and we will greatly miss our relationship with them,” Sadi added. “We would like to thank our players, people and partners during our time in operation.”
LiveScore Bet continues to operate in the UK and Irish and Nigerian markets.