Population 2019: 17,3 million
GDP 2019: 812 billion EUR
GDP per capita 2019: 42,020 EUR
Taxation for Lotteries: 30,1 per cent on all prizes over 449 EUR, with a 29 + 1,75 per cent proposed GGR tax on online games of chance
Charity lotteries allowed:
Yes

LEGISLATION

In the Netherlands, operating any public gaming without a license that is issued by the Kansspelautoriteit (Gaming Authority) is prohibited, stated in the Games of Chance Act of 1964. The Gaming Authority and the State Secretary of the Ministry of Security and Justice organise the Dutch gaming policy. The State Secretary is responsible for a coherent, balanced and consistent gambling policy, whereas the Gaming Authority is responsible for its implementation and its enforcement.

With regards to games of chance, two crucial things happened in 2016. First, the Dutch lottery market became more open due to a ruling of the Amsterdam Administrative Court.

Consequently, it allowed an infinite number of charity lotteries to apply for a license. Before this, licenses granted on an exclusive basis, and only the state lottery and a limited number of charity lotteries had a license to organise frequent lotteries. Since the ruling, they issued three more licenses.

2016 was an important year for online legislation; a bill that legalised online gambling had passed in the Dutch parliament. It passed in the Dutch Senate in 2019. Until then, online games weren't allowed. In short, the bill regulated online games such as poker and sports-betting and was based on very liberal principles, meaning that the number of operators that could apply for a license in the future was unlimited. The proposed tax, as of now, is 29 per cent on gross gaming revenues (GGR). Besides, online gambling license holders will also be required to pay a 1,75 per cent GGR tax for the expenses of the Gaming Authority and an addiction prevention fund. Expected is that this bill will come into effect on the 1st of January 2021.


CHARITY LOTTERIES

Charity lottery licenses are allowed to raise funds for the civil society without any profit motives and pooling of prizes. These lotteries are obliged by law to contribute at least 40 per cent of their revenue to organisations with public benefit. All prizes that exceed 449 EUR impose a 29 per cent tax.

 

NATIONALE GOEDE DOELEN LOTERIJEN

The biggest charity lotteries in the Netherlands are the Nationale Postcode Loterij, the VriendenLoterij and the BankGiro Loterij. Together, they make up the public limited liability company the Nationale Goede Doelen Loterijen NV, or the National Charity Lotteries foundation. Together, these three organisations support civil society organisations both in the Netherlands and across the globe with institutional and long-term funding. Every lottery organises 14 or 15 drawings each year, from which a minimum of 40 per cent distributed among the various national and international civil society organisations that they support. Since its origin, they donated more than 8 billion EUR to a wide variety of charities.

The genesis of the Nationale Postcode Loterij laid the foundation of the National Charity Lotteries. Founded in 1989 as a fundraiser for the Dutch Refugee Council, the Dutch organisation for Nature Preservation Oxfam, and primarily supports organisations that support the environment, human rights and social cohesion. Each month, more than three million participants play with more than four million tickets. In 2019, more than 376 million EUR distributed among more than 100 charities, including organisations like Amnesty International, WWF and UNICEF.

In 1998, the VriendenLoterij, or FriendsLottery also joined the National Charity Lotteries. In total, the lottery supports almost 50 charities in the fields of health, sports and wellbeing. Players have the option to choose to play for their favourite club or association. Every month, around 550.000 participants play with more than 700.000 tickets. The FriendsLottery contributed more than 61 million EUR in 2019 to good causes such as the Aids Foundation and more than 3300 local sports clubs and associations.

The BankGiro Loterij was the last charity lottery to join the fold in 2002. In 2019, it supported 83 cultural organisations that together received almost 85 million EUR. The lottery sold 840.000 tickets to more than 640.000 participants monthly. Just like the VriendenLoterij, participants can choose to play for a preferred organisation, such as a well-liked museum in their area. Well-known beneficiaries of the BankGiro Loterij include the Anne Frank Foundation, the Dutch Windmill Association, the Rijksmuseum and the Prince Bernhard Culture Fund.

SAMENWERKENDE NON-PROFIT LOTTERIJEN

After the opening of the market for charity lotteries in 2016, The Zonnebloem Loterij, Jantje Beton Loterij, Nationale Scouting Loterij, Grote Clubactie, and the KWF seizoensloterij jointly applied for a license as the Samenwerkende Non-Profit Loterijen (Cooperating of Non-profit Lotteries). Before this, they all had a license separately to organise one drawing each year. Only the KWF seizoensloterij was allowed to hold four draws a year. In December 2016, they received a license for 5 years.

Once every year, the Zonnebloem Loterij organises a lottery to raise funds for their organisation, dedicated to the care of the disabled, sick and elderly. Each year, approximately 2 million EUR is raised by just this single draw.

The Jantje Beton Loterij is a national advocate for a child's right to play. Each year, this lottery raises almost 1 million EUR. Fifty per cent of the revenue goes directly towards the support of Dutch schools, whereas the remainder goes to smaller projects of the Jantje Beton foundation.

The National Scouting Organisation, the largest youth association in the Netherlands, organises the Nationale Scouting Loterij. Overall, this organisation consists of over 1100 clubs, focussed explicitly on providing fun and challenging activities for youngsters. Sixty per cent of all the proceeds go directly towards these groups themselves, the remainder for prizes and overhead. In 2019, these scouting clubs raised almost 400.000 EUR.

Each year, during the Grote Clubactie, more than 200,000 volunteers try to raise money for the more than 5000 clubs and associations they represent by selling lottery tickets. Eighty per cent of the revenue goes directly towards the organisations these people represent. In 2019, it raised almost 8,5 million EUR.

Lastly, the KWF Seizoenslotterij organises a seasonal lottery. KWF is an organisation that focusses explicitly on fighting cancer. As such, proceeds used to promote cancer research, raise awareness and increase the quality of cancer health care. In 2018, it raised more than 10 million EUR to fight cancer.

LOT OF HAPPINESS

This lottery, organised by FairShare, seeks to primarily raise funds for five organisations that try to help and cheer up very ill children. These organisations are Clini Clowns, Make-a-Wish, Strong Babies, Stichting de Opkikker and Kika. Forty per cent of all the proceeds go to these organisations, and the players themselves can pick which organisation becomes the beneficiary of their lottery ticket.

Lastly, there are two other charity lottery license holders: Raffld and Impact Lottery. However, as of Q1 2020, these two are not operational.

OTHER CHARITY LOTTERIES

In addition to the above, three new lotteries have founded since the start of 2020; Snapchance, BeterLot and Care-a-Lot. Unfortunately, there is not much information available about these lotteries yet.

OTHER LOTTERIES: DE NEDERLANDSE LOTERIJ

In addition to the lotteries mentioned above, there are two other lotteries: Staatsloterij (the Dutch State lottery) and the Lotto. These two entities are the sole beneficiary of a permanent, privately provided (monopoly) license.

Together, the Staatsloterij and the Lotto have an annual turnover of almost 1.3 billion EUR (2019). While 40 per cent of all the proceeds of charity lotteries distributed across civil society organisations, De Nederlandse Loterij falls under another category of which the state is its largest beneficiary. Respectively, 18 and 15 per cent of the proceeds of the Lotto and Staatloterij distributed. In 2019, the Nederlandse loterij distributed 173 million EUR, of which 109 million EUR went to the Dutch state, 46 million to NOC*NSF (the largest Dutch representative of sports associations) and 17 million EUR to other various charities.

The Games of Chance act specifies that there can only be one state lottery (e.g. monopoly). This license is permanently in possession of the Staatsloterij (the Dutch state lottery), which has been the Dutch state lottery since 1726.

The Lotto represents three different games of chance, namely: Lotto, Eurojackpot and Lucky Day. They are the only organisation in the Netherlands allowed to distribute scratch cards and organise sports-betting (through the TOTO).