EU gambling levy proposal under further legislative consideration

(AsiaGameHub) –   A proposed EU-wide tax on gambling earnings is set to be discussed by the EU Budget Committee.

Belgium.- Brussels legislators are increasingly giving serious thought to a proposed European Union gambling tax. Although its implementation is still a long way off, the EU Budget Committee is slated to discuss the proposal on May 27, with Budget Commissioner Piotr Serafin presiding over the session.

Romanian MEP Victor Negrescu, who serves as vice president of the European Parliament and is also on the Budget Committee, put forward this proposal in February. He suggests imposing a 1 percent charge on gambling revenue generated by operators across all EU member states. This would be levied in addition to the existing national tax systems in each country.

The Socialists and Democrats group within the EU has backed the initiative, contending that such a tax could raise between €2 billion and €4 billion annually for health, education, and youth initiatives. Over the EU’s seven-year budget period, this could amount to as much as €28 billion. Proponents view this as complementary to efforts to secure funding for the upcoming Multiannual Financial Framework (MFF) for 2028–2034, which is estimated to be a €2 trillion package.

Conversely, the European Gaming and Betting Association (EGBA), representing licensed online gambling operators within the bloc, has deemed the proposal “unworkable” and criticised it.

Secretary General Maaten Haijer stated: “Gambling is not presently harmonised across the EU, and consequently, there is no legal foundation to establish, manage, or collect such a tax. Beyond these legal impediments, imposing an additional levy on top of current national taxes – in an industry where licensed operators in certain Member States already face tax rates over 50 percent of gross gaming revenue – would ultimately benefit only one party: illegal operators.”

He further commented: “Since they are exempt from taxes, illicit operators are already able to provide players with more appealing products and pricing, devoid of the consumer protections offered by licensed operators. Introducing an EU levy would exacerbate this issue, leading to an expansion of the black market, detrimental effects on consumer protection for EU citizens, and a decrease in overall tax revenues for Member States.”