Proposed Dutch Online Casino Payment Law Rejected by Banks
Dutch financial institutions are determined not to sink into the quagmire that U.S. banks face regarding online casinos. The Netherlands Banking Association has informed Justice Minister Hirsch Ballin that a proposal similar to the U.S. UIGEA preventing transactions involving Internet gaming is neither legal nor workable.
Michel Noordermeer, spokesman for the banking group known as NVB, said, "The Minister wants us to become an extension of the justice system, but that is not the role of the banks." The same issue has plagued American banks since the passage of the UIGEA in 2006, and promises to worsen with the Bush Treasury's last-second implementation of regulations.
Noordermeer asserted that European Union rules dictated that banks continue to serve online gambling sites, and that the Dutch government should prosecute an Internet casino operator before trying to ask the banks to enforce a questionable law. He said the Betting and Gaming Act, in conjunction with EU law, would almost certainly preclude the Dutch plan.
The Netherlands has also introduced regulations providing different tax structures for foreign and domestic online gambling sites. This is seen by the banks as another flouting of European Union rules.
Justice Department representatives waved off the complaints of the finance community, saying, "Justice bases itself on Dutch law in fighting illegal Internet gaming and there is no room for free choice on the side of the banks. European law has no influence on this."
But Minster Ballin conceded that he has been contacted by several members of the Dutch House of Representatives, who are concerned about the possible conflicts within the proposed package of regulations. Ballin noted that he had been forced to make changes to the measure by developments in European Commission findings relating to online gambling, and would present the new concepts to Dutch lawmakers by the end of 2008.
