Unclear whether gambling tax will affect NLO revenues
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18 Aug 2024 •
Reading time: 3 minutes After the most successful Olympic Games ever for the country, the Netherlands is looking ahead to the future of top sport. De Volkskrant asked how dramatic the cuts in the sports sector would be.
State Secretary Vincent Karremans, responsible for Youth Prevention and Sport, emphasized that it is too early to say anything about this. And to what extent the income of the Dutch Lottery NLO will decrease as a result of the increase in the gambling tax.
Cost savings too premature?
Just before the Olympic Games in Paris, it was announced that the new government plans to make major cuts in both top and recreational sports. This has led to concerned reactions from sports associations such as NOC*NSF and the Dutch Skating Federation KNSB. There is a fear that the increase in the gambling tax to 37.8% will lead to lower contributions to the sport.
Karremans responded by saying that it is still too early to conclude that 40 to 45 million euros should be cut from the sport. He pointed out that the increase in the gambling tax does not automatically mean that the NLO will generate less income. What this will mean for NOC*NSF remains to be seen. Karremans emphasized that it is important not to rush and wait for the outcome of the government’s plans.
“The Dutch Lottery may have less income due to the increase in the gambling tax. But whether that is the case and what this means for NOC*NSF remains to be seen,” Karremans said. He called for patience and emphasized that there are still many uncertainties that need to be clarified first.
Impact on NOC*NSF and Dutch Athletes
Marc van den Tweel, general director of NOC*NSF, warned that it will be difficult to maintain the current level of Dutch top sport. Especially if no additional financing becomes available. According to Van den Tweel, top sport needs an additional 20 million euros annually to maintain the current level. And the consequences of the main lines agreement would be on top of that. He expects that the increase in the gambling tax would lead to a decrease of 24% in the payment from the Dutch Lottery to NOC*NSF.
Maurits Hendriks, the former technical director of NOC*NSF, shared these concerns and emphasized that the impact of the cuts would be significant. He recalled how NOCNSF had to make difficult choices during a previous crisis about which sports would continue to be supported. And which ones aren’t.
Sports and gambling sector are closely linked
The gambling sector and top sport have been intertwined for many years. In addition to funds, this constitutes an important part, especially in the field of sponsors. This is also restricted in the Dutch market. For example, online casinos are no longer allowed to have a prominent presence in the stadium or on the shirts.
This has also been restricted in amateur sports. From January 1, 2025, the rules on gambling advertisements will be increased and it will no longer be permitted to advertise gambling companies on the front of club sports shirts. This also results in lower income after the expectation that a new revenue model had been found with the arrival of licensed online casinos.