EU PokerStars players are exempt from paying taxes on their winnings.
At the turn of the year, a court in the Dutch capital of 's-Hertogenbosch decided that players on PokerStars.EU do not have to pay taxes on their winnings in the Netherlands. However, an appeal against this decision could still be possible. Before, players in the Netherlands had to pay 29% tax directly on their winnings.
Years ago, the Dutch tax authority Belastingdienst took legal action against individuals who had not paid taxes on their winnings through the online platform PokerStars.Eu. The issue revolved around whether the poker games on PokerStars.Eu were taking place within the European Union. At the same time, PokerStars began operations in Sweden's newly regulated gambling market.
Rational Group's Company Structure Scrutinized
At the time of the lawsuit, PokerStars.Eu formed part of the Rational Group, which had set up its headquarters on the Isle of Man. Now, the company belongs to the Stars Group, which is based in Toronto, Canada. PokerStars, nonetheless, holds a gambling license from the Maltese Gaming Authority (MGA).
As per the Dutch Gambling Act, operators must be taxed domestically, and inside the EU due to the free movement of services. The court had to determine whether the games on PokerStars.Eu are being played within the European Union.
Examining the Location of Lobby Servers and Random Number Generators
If you sign up at PokerStars.Eu from the Netherlands, you agree to the terms and conditions of Rational Gaming Ltd, a company registered on the Maltese island of Malta and licensed to organize online poker games. However, the court sought to confirm that the games are actually happening in Malta, as this is crucial for Dutch gambling law.
Since the location of a virtual poker game is difficult to determine, the 's-Hertogenbosch Court also looked into the location of the lobby servers and the random number generators essential for dealing the cards. These random number generators require certification by independent third parties to prevent any suspicion of fraud. Gaming Laboratories International (GLI) has provided several certificates for the Rational Group, covering both Maltese and Isle of Man servers. Ultimately, the court ruled that the final venue of an online poker game cannot be clearly determined and resolved that the games are hosted in Malta and thus within the EU due to the size of the Maltese infrastructure.
"Therefore, Rational Gaming Europe Limited (based in Malta) should be considered the owner of the online poker game provided through PokerStars.Eu. The taxation of winnings made on PokerStars.Eu thus conflicts with Article 57 of the Treaty on the Functioning of the European Union."- Judgment of the Court of Justice of 's-Hertogenbosch
Tax Office Considers Appealing the Ruling
The Court of 's-Hertogenbosch is currently dealing with appeals from various Dutch provinces in the south. According to reports, the tax office Belastingdienst is contemplating whether to challenge the verdict. If the Secretary of State chooses to appeal, the case will be brought before the Netherlands' highest court, the High Council. This would indefinitely prolong the legal proceedings, which commenced in 2015. If the appeal is unsuccessful, Belastingdienst will also need to pay millions in tax refunds to the affected players, along with the ongoing legal costs. Dutch lawyer Pepijn Le Heux, representing 100 players in court, confirmed that some of these tax payments involved amounts exceeding 500,000 thousand euros.
Legal Victories for PokerStars
The outlook is extremely favorable for the provider PokerStars in the Dutch market. The restructuring of the gambling market in Sweden also began at the start of this year. In 2018, Sweden amended its gambling law to better regulate providers from other EU countries. Consequently, the Stars Group (TSG Interactive Ltd) applied for licenses for PokerStars.se, PokerStarsCasino.se, Fulltilt.se, and Betstars.se and received them in December 2018. In addition to the Dutch court decision, the provider is also benefiting from new legal regulations in another key European market.
"We are delighted to now offer our complete PokerStars and BetStars product line under Sweden's new regulations. Clear regulations are a significant step forward for Swedish players and the online betting and gaming industry. They allow us to bring our products and services more effectively to Swedish customers."- Guy Templer, Chief Operating Officer of Stars Interactive Group
Read also:
- The 15-year-old murderer admits to fatally shooting Francesco, who was 14.
- Schalke's pressure has affected Terodde.
- Columbia University Faces Possible Expulsion Following Demonstrations
- Football turmoil in Munich: Last-minute penalty stuns Bayern
Source: www.onlinecasinosdeutschland.com
