New European Union igaming tax proposed
The proposal calls for a harmonised tax on online gambling across all European Union countries.
Belgium.- Victor Negrescu, Vice-President of the European Parliament has backed a proposal for a harmonised tax on online gambling across the European Union. He claims an EU-wide igaming tax would strengthen the bloc’s resources without putting pressure on national budgets.
The measure would impose a fixed levy on online betting and gaming operators, with revenues earmarked for EU budget priorities such as education and youth initiatives. Negrescu claims that even a 1 per cent EU levy could deliver tens of billions of euros to the EU budget.
“Today, the online gambling market is one of the fastest growing digital industries, generating dozens of billions of euros, yet the significant share of these profits escapes fair taxation,” he said.
“My proposal is simple and responsible – a European levy on the online gambling and betting industry, applied equally to the already existing national turnover taxes, while fighting for a clear EU directive against illegal unlicensed platforms.”
“A coordinated EU-level tax would enable us to find a solution for the lack of EU resources by providing dedicated funding for education, skills, prevention, addiction treatment and mental health.”
Unlike VAT, which is partially harmonised, gambling taxation remains under member state control, and national gambling tax regimes currently differ widely across the EU. Tax rates on gross gambling revenue ranging from as little as 5 per cent to as much as 40 per cent.
Several EU countries have raised gambling taxes in recent years, including France and Sweden. On the other hand, Estonia has recently passed legislation to reduce gambling tax (after accidentally eliminating gambling tax completely for this year).
Critics say that this wide variation creates distortions in the internal market and encourages operators to focus on low-tax countries. Meanwhile, Negrescu argues that the EU budget is seen as inadequate to meet current and future policy demands, particularly in education and skills.
Parliamentary discussions have cited internal research estimating that the online gambling and betting industry generated around €130bn in 2022, with revenues potentially nearing €200bn today and growing at roughly 5 per cent annually.
The prospects of an EU igaming tax
There’s no formal draft bill as yet, and it’s not clear how an EU igaming tax would be calculated, whether it would be deductible against national obligations, or who would be responsible for enforcement. If adopted, the tax would presumably sit on top of existing national levies unless coordination mechanisms were introduced.
For now, it seems unlikely that the proposal will succeed. The European Parliament currently lacks independent taxation powers. Any measure to create a EU gambling tax would require unanimous consent from all 27 Member States, which means that countries with strong iGaming industries could block the proposal.
However, the discussion signals a potential move towards more fiscal harmonisation, with potentially major implications for igaming operators. Introducing an EU-level levy would also shift the balance between national sovereignty and EU fiscal integration.
Supporters of the proposal highlight its potential to fund socially valuable initiatives, particularly education and skills development within the EU’s multiannual financial framework. Framing the tax in this way enhances its political appeal.
