Last week, state-licensed casino operator Holland Casino had its plans to launch an online offering delayed, as the Dutch Senate postponed a vote on a proposal to extend the operator an online license. The issue has remained before the Senate -- the country's legislative terminus -- for over a year, but could by February's end finally be put to a vote.
By way of background, the Lower House in September 2006 threw its support behind a proposal from then Justice Minister Piet Hein Donner for a three-year trial of a state-licensed online casino.
Under the proposal, Holland Casino would be given a three-year probationary period during which its site would attempt luring the country's estimated 400,000 Internet gamblers away from unlicensed -- and therefore illegal -- operators.
In legislative terms, the proposal would amend the Dutch Gambling Act of 1964 to allow for the temporary provision of certain Internet-based games of chance by Holland Casino.
With the approval of Dutch parliament's Lower House, Donner's proposal moved to the Upper House (Dutch Senate) on Sept. 20, 2006. Unlike the Lower House, which has the power to craft legislation, the Senate has only the power to accept or reject legislative proposals.
But so far, the Senate has done neither as the proposal still awaits a vote.
"Several developments caused the delay," Justin Franssen, an attorney with Dutch law firm Van Mens & Wisselink, told IGN.
First, said Franssen, elections were held for the Lower House on Nov. 22, 2006, and the new coalition government was sworn in on Feb. 22, 2007.
Second, the Senate's Permanent Justice Commission compiled two "critical" reports on Donner's proposal, which were then answered by Donner's successor, Ernst Hirsch Ballin.
A new vote on the proposal was scheduled for Feb. 5, 2008, but Franssen said Hirsch Ballin issued a letter to the Senate on Feb. 4 requesting that the vote be postponed.
"He (Hirsch Ballin) stated the he wanted to inform the Senate further on the importance of the proposed legislation in the enforcement policy, because of 'recent developments on the enforcement of the prohibition on online gaming,'" Franssen said.
While Senate support for Hirsch Ballin's request to postpone the vote was not strong -- a Senate letter sent to Hirsch Ballin called his Feb. 4 request "cryptic and inadequate" -- it was nonetheless granted.
According to a report posted on the Dutch Senate's Web site -- later translated by Van Mens & Wisselink -- the Senate remains "seriously divided" over the issue.
The Christian Democratic Appeal, which holds the largest chunk of seats in the Senate -- 21 out of 75 -- has expressed concern that the proposal could contravene European Community law, by way of its categorical exclusion of other gaming operators, both domestic and foreign.
Similarly, the Liberal Party (VVD), which holds 14 seats, has argued the country should accept other operators. Sen. Ankie Broekers-Knol, speaking on behalf of the VVD on Jan. 29 during a debate on the proposal, said that allowing Holland Casino to continue its monopoly over both land-based and Internet casino gambling is an "outmoded idea."
However, the Labour Party, which also holds 14 seats, has expressed support for the proposal on grounds that opening the market to more than one operator would render problem gambling an issue impossible to control.
Meanwhile, the Socialist Party (12 seats), the Christian Union (4 seats) and the Political Reformed Party (2 seats) have all said they will not support the proposal.
Facing a divided Senate, Holland Casino still believes it will receive the license.
"Holland Casino still believes the Internet casino will be launched," the group's media relations manager, Flip Dötsch, told IGN last week. "This is because [Justice Minister Hirsch Ballin] feels very strong to make this happen."
Dötsch would not offer a time frame -- "it's hard to say" -- but said that Holland Casino was not asked to provide Hirsch Ballin with any additional information.
Franssen said, however, that since IGN interviewed Dötsch, Holland Casino has been instructed to provide information on its software licensing agreement with CryptoLogic, which was announced last February.
"Some MPs are critical of the fee being calculated as a percentage of the total revenue, instead of a fixed fee," said Franssen.
In its original release, CryptoLogic did not provide financial details for the deal.
Looking ahead, Franssen said that the Senate has instructed Hirsch Ballin to return with the additional information he's promised to provide before February's end.
In the Dutch parliament, the Senate is the last stop for all proposed legislation. If the Senate approves the Holland Casino license proposal, it will be granted.
Franssen believes that if the proposal is passed, the European Commission is likely to initiate a new infringement proceeding against the country.
"It took a long time to bring forward the initial proposal, and it will take even longer to have the project started," observed Franssen and fellow Dutch Attorney Arjan van 't Veer in a co-written chapter in Internet Gambling Report: Ninth Edition.
To view a critical response to the proposal written by European Commission Vice President Günter Verheugen in 2005, click here.