Industry body opposes idea of a European levy on online gambling
The European Gaming and Betting Association has warned against the idea of a new EU-wide levy on online gambling, after the European Parliament’s Budget Committee backed exploring fresh revenue sources to help fund the bloc’s proposed €2tn budget for 2028 to 2034.
In a statement released earlier this week, the Brussels-based industry body said the proposal would be “fundamentally unworkable” and risk undermining consumer protection by making unlicensed operators more competitive.
The budget fight has opened a broader political argument in Brussels about whether fast-growing digital industries should contribute directly to EU finances, rather than being taxed only at the national level.
That idea has alarmed both operators and governments in countries with large gambling sectors, including Malta, where politicians have already signalled they would strongly resist any attempt to impose a new EU-wide charge.
Committee vote adds pressure to budget debate
The European Parliament, however, can press for new funding ideas, but it cannot impose an EU tax by itself. Any new own resource would have to be agreed unanimously by all 27 member states through the Council, a high bar that has defeated plenty of ambitious fiscal ideas in the past.
EGBA argues that the problem goes beyond politics and into the legal structure of the single market. “Gambling is currently not harmonised at the EU level, and there is no legal basis to define, administer or collect such a levy,” Maarten Haijer, EGBA’s secretary general, said.
That line reflects a long-running feature of EU gambling policy. While many online operators work across borders and benefit from the bloc’s digital single market, gambling rules and taxation remain overwhelmingly national. The result is a patchwork of licensing systems, tax regimes and enforcement models across Europe, making any common levy difficult to design.
The idea has emerged as part of a wider debate over how to fund the EU’s next long-term budget, as lawmakers examine whether cross-border digital sectors should contribute more directly to EU finances. Supporters of the gambling levy have argued that the sector’s size, online nature and expansion across member states make it a plausible target.
But from the industry’s perspective, the proposal lands on a market that is already heavily taxed in many jurisdictions.
Industry says legal operators would pay the price
EGBA’s central argument is that an additional EU levy would not fall evenly across the market. Instead, it says, the burden would land on licensed operators already paying national duties, while illegal operators would continue offering untaxed products with fewer safeguards.
“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% of gross gaming revenue – would only have one winner: illegal operators,” Haijer said.
The association says that would directly weaken the EU’s stated consumer protection goals. “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,” Haijer added.
He went further, arguing that the levy could backfire on governments as well as companies. “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 political sensitivity is especially acute in Malta, where the gaming industry plays a significant economic role. Earlier reactions from Maltese politicians made clear that any move towards a binding EU measure would face strong resistance. That could prove decisive, since any new EU-wide levy would need unanimous approval from member states.
For now, the proposal remains at a preliminary stage. The European Parliament is expected to vote on the committee opinion at plenary level in late April. After that, negotiations over the wider budget package will continue through the year, with a conclusion expected by the end of 2026.
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