Arts and culture sector in panic due to higher gambling tax

The arts and culture sector in the Netherlands is very concerned. The planned increase in gambling tax to 37.8% threatens to put many institutions in dire straits. Data from municipalities, private financiers and the sector itself show that this tax measure could have major financial consequences.

What does the gambling tax mean for arts institutions?

The government wants to increase the gambling tax from 30.5% to 37.8%. At first glance, this seems like a measure that mainly affects gambling companies, but cultural institutions are also hit hard. Many art projects and institutions receive money from charity lotteries such as the Vriendenloterij and the Nederlandse Loterij. If these lotteries can pay less money due to the higher tax, cultural institutions will also receive less.

Cathelijne Broers, director of the Cultural Fund, is sounding the alarm. 

“We are on the eve of Budget Day and there are major concerns. The accumulation of cutbacks and tax increases threatens to destroy a large part of the arts and culture sector.” 

According to Broers, not only the short term is at stake, but also the future of many institutions.

VAT increase and lower subsidies make the problem even worse

In addition to the increase in gambling tax, the cultural sector is facing even more. VAT on cultural products is going up from 9% to 21%. This means that tickets for the theatre, concerts or museums will become considerably more expensive, which will increase the threshold for visitors.

In addition, both municipal and national subsidies will be reduced, and tax benefits for donors will be abolished. All of this together means that institutions will lose out on an estimated €200 to €350 million per year.

For many cultural institutions, such as museums, theatres and film houses, this is an absolute disaster. They are already dependent on subsidies and donations, and without that income they are in danger of having to close their doors.

The sports world is also sounding the alarm

It is not only cultural institutions that are afraid of the consequences of the higher gambling tax. The sports world has also panicked. Sports association NOC*NSF has calculated that the tax increase will cost the sports sector around €12.5 million in income. Various sports associations, such as the skating association and the cycling association, have already spoken out against the plans.

Well-known top athletes, including former swimmer Pieter van den Hoogenband, have even written an open letter to the cabinet. They are calling on the government to reconsider these tax plans. According to them, the sports sector is in danger of suffering considerable damage if the plans go ahead.

The Cruyff Foundation has also joined the discussion. They hope that lotteries that contribute money to charities, such as sports and culture, will be exempt from the tax increase. CDA MP Inge van Dijk has even submitted a motion for this, in which she advocates a lower tax for charity lotteries.

Gambling companies fear for their future

The increase in gambling tax will of course also affect the gambling sector itself. Various industry organisations, such as VAN Kansspelen, have already stated that the higher tax could mean the end of the offline gambling market in the Netherlands. They have sent a letter to the government to share their concerns.

Holland Casino, the state-owned company that operates gambling halls, is also feeling the pressure. CEO Petra de Ruiter warns that Holland Casino may have to conduct more aggressive advertising campaigns to stay afloat. This has led to parliamentary questions from, among others, the SGP and ChristenUnie, who are concerned about the ethical side of such campaigns.

In addition, the trade unions De Unie and FNV are concerned about the employees of Holland Casino. If the tax increase goes ahead, they fear job losses.