EU Considers Online Gambling Levy Across Member States To Fund Future Budget

The European Commission has estimated that an EU-wide online gambling tax could generate up to €13.3bn during its first seven years, significantly below earlier projections.

Under the proposal, online gambling operators would pay a 3% levy based on gross gaming revenue. The initiative forms part of discussions around funding the EU’s next long-term budget running from 2028 to 2034.

According to estimates obtained by Politico, the Commission believes the measure could generate approximately €1.9bn annually if introduced. Revenue collected through the levy would be paid directly into the EU budget.

Commission Sees Gambling As Revenue Source

The proposed gambling levy ranks among the larger revenue-generating measures currently being considered by European policymakers.

Only a planned tax on electronic waste is expected to raise more revenue, with projections of around €15bn over the same 7-year period. Proposed reforms to tobacco taxation are forecast to generate approximately €11.2bn.

However, the Commission’s €13.3bn estimate is substantially lower than the €28bn projection put forward by Romanian MEP Victor Negrescu when he first introduced the proposal in February.

Although legal gambling is taxed across EU member states, the Commission believes a bloc-wide levy could provide a direct source of funding for the EU budget without requiring additional contributions from national governments.

The proposal is at an early stage and would still need to progress through the EU’s legislative process.

Industry Warns Of Unintended Consequences

The proposal has attracted criticism from industry representatives. In April, the European Gaming and Betting Association (EGBA) described the levy as “fundamentally unworkable” and warned that it could weaken licensed operators and lower revenue for member states.

Speaking on the proposal, EGBA Secretary General Maarten Haijer said: “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.”

He also questioned how the levy collection will work with the current fragmented online gambling landscape across member states.

Policymakers in Europe have been exploring an online gambling levy to raise funds for its 2028 to 2034 budget. This move is projected to generate around $13.3bn over the next seven years. However, there’s a little resistance from critics, who claim that the levy could favour illegal platforms and become counterproductive.