EGBA Warns EU-Wide Gambling Levy Could Strengthen Black Market

The European Gaming and Betting Association has pushed back against calls for a European Union-wide levy on online gambling. It argues that the proposal could give illegal sites a competitive edge and lower tax income. 

The issue surfaced this week as the European Parliament’s Budget Committee discussed the next Multiannual Financial Framework for 2028 to 2034. As part of its opinion, the Committee identified possible revenue sources for the EU budget, including an online gambling levy.

The proposal was first raised in February by MEP Victor Negrescu. He suggested that this move could generate between €2bn and €4bn each year, and up to €28bn over the full budget cycle.

Budget Committee Backs Opinion Including Gambling Levy

The Budget Committee voted in favour of the interim report. 26 members supported the budget, while nine voted against and five were absent. This levy has added momentum to the discussions, after over 20 MEPs already co-signed the original proposal.

The European Parliament is expected to vote on the opinion in plenary later in April. Afterward, formal negotiations will begin on the long-term budget.

The final decision on a new EU revenue stream would require unanimous backing from all 27 Member States through the EU Council.

EGBA Questions Legal Basis and Tax Logic

EGBA secretary general Maarten Haijer described the current vote as only a “tentative” step to explore the idea, but does not amount to a legislative proposal or decision.

He also warned that the tax burden on licensed operators is already high in several jurisdictions. “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.”

“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. It would expand the black market, harm consumer protection for EU citizens, and reduce overall tax revenues for Member States,” Haijer concluded.

The European Parliament’s Budget Committee is currently exploring new revenue streams and an online gambling levy is on the cards. Though it is a promising opportunity, care must be taken to avoid putting legitimate EU sites out of business.

Further updates on regulatory developments will be available in the Regulation Section.