EU online gambling levy concept “unworkable”, the EGBA says
The industry group says there is no legal basis for an EU levy on online gambling.
Belgium.- The European Gaming and Betting Association (EGBA) has responded to the idea of an EU levy on online gambling, deeming such a move to be “unworkable”. The potential measure was mooted by the European Parliament’s Budget Committee as part of its opinion on the EU’s Multiannual Financial Framework (MFF) for 2028-2034.
The EGBA said that introducing an EU online gambling levy on top of existing national gambling taxes would also benefit illegal gambling operators at the expense of consumer protection for EU citizens. It believes such a move would end up reducing tax revenues for EU member states.
Maarten Haijer, Secretary General of EGBA, said: “Gambling is currently not harmonised at EU level and there is no legal basis to define, administer or collect such a levy. Setting aside these legal obstacles, adding yet another levy on top of existing national taxes – in a sector where licensed operators in some Member States are already taxed at rates exceeding 50 per cent of gross gaming revenue – would only have one winner: illegal operators.”
Haijer added: “Because they pay no tax, illegal operators can already offer players more attractive products and prices without any of the consumer safeguards that licensed operators provide. Adding an EU levy would make this situation even worse: expanding the black market, harming consumer protection for EU citizens, and reducing overall tax revenues for Member States.”
The EGBA stressed that the European Parliament’s Budget Committee’s opinion was a highly tentative, conditional call on member states to explore the idea of an EU online gambling levy and not a concrete proposal. Any decision on a new direct revenue stream for the EU budget would require unanimous agreement of all 27 Member States through the EU Council.
The European Parliament is expected to vote on the Committee opinion at its plenary session next week. Following this, the formal MFF negotiations will begin, with a conclusion expected by the end of 2026.
Meanwhile, the EGBA has provided evidence to the European Commission’s call for evidence on the upcoming EU Action Plan on Fighting Online Fraud. It used its submission to push for coordinated EU action to tackle fraudulent gambling sites and apps that exploit the reputation of legitimate operators.
