EU considers new tax on online gambling, Malta ready to veto
A group of Members of the European Parliament have asked the European Commission to consider introducing a harmonised tax on online gambling and betting services to help fund priorities such as education and youth policies.
The proposal, raised on 11 March 2026 during discussions on the next Multiannual Financial Framework, urges the Commission to assess whether new EU funding could be sourced from the online gambling sector.
Supporters see the debate as a first step in exploring how fast-growing digital sectors could contribute to financing the EU’s common policies.
An increasingly digital and cross-border sector
Online gambling has become one of the fastest-growing digital industries in Europe. Betting and casino platforms operate across borders, benefiting from the EU’s single market and digital infrastructure.
MEPs argue that the sector benefits from the single market and EU digital infrastructure, but tax and regulatory frameworks remain largely national and fragmented.
They argue that this situation can create distortions in the internal market and make it harder for Member States to coordinate action against illegal or unlicensed operators.
The idea of a new EU budget resource
Victor Negrescu, Vice-President of the European Parliament, is one of the initiative’s promoters. Many MEPs from different political groups have signed the proposal, showing broad interest in finding new funding for EU priorities.
The proposal asks if the online gambling sector could help pay for EU programmes on education, digital skills and youth policies through a European tax.
The document says investing in these areas is important for the EU’s economy, social unity and democracy.
Estimates cited in the proposal, based on data from the European Parliament’s research service, suggest that a contribution from the online gambling sector could generate between €2bn and €4bn per year, or around €28bn over the next Multiannual Financial Framework period.
The money could also go to mental health and addiction prevention programmes.
Institutional limits of the proposal
Even with political interest, the process for approving such a measure is complicated.
The European Parliament does not have the authority to introduce new EU-wide taxes on its own. Any new fiscal resource for the Union would require unanimous approval by the governments of all Member States in the Council of the European Union.
This means any single country could block a European tax on online gambling, making the process sensitive.
Political reactions and Malta’s position
Countries with large online gambling industries have reacted most strongly so far.
Several MEPs from Malta, where the online gambling sector is economically significant, have voiced strong reservations about the potential impact of an EU-wide tax. These concerns, as reported by Maltese media, focus on fears that such a tax could harm Malta’s gaming industry and broader economy.
Nationalist MEP Peter Agius stated the initiative could impose a new fiscal burden on Malta’s iGaming industry. Fellow Maltese MEP Alex Agius Saliba noted he shares these reservations, clarifying that the proposal does not represent his group’s official position but stresses the risk to Malta’s economy.
Agius Saliba added that if the proposal proceeds, Maltese representatives may oppose it to safeguard Malta’s national interests, emphasising the government’s commitment to protecting both the sector and the country’s economic well-being.
European media sources suggest that, if the tax proposal advances, Malta could use its veto in the Council to block it, given the government’s focus on protecting the country’s substantial gaming sector and related economic interests.
A debate likely to continue
For now, the proposal is still at an early stage and is not yet a formal law. Its appearance in Parliament shows that online gambling is getting more political attention in Europe.
The debate about an online gambling tax is part of a wider discussion on how to fund EU policies and regulate digital industries.
If advanced, the proposal will trigger negotiations among gambling companies, national governments, and EU institutions on digital market regulation, taxation, and public policy.
This article was first published in Italian on 13 March 2026.
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