EU weighs gambling levy as part of long-term budget talks

EU weighs gambling levy as part of long-term budget talks

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The European Commission is assessing whether an EU-wide gambling levy could form part of the bloc’s next long-term budget framework, after a proposal for a uniform 1% tax on gambling gained support in Brussels.

Victor Negrescu, European Parliament VP, put the idea forward in February and it is being discussed as part of the Multiannual Financial Framework for 2028 to 2034. The budget plan is being developed by the Council of the European Union under the Cypriot Presidency.

A European Parliament official told SBC News that the proposal had “gained momentum” in wider discussions over new EU revenue sources. The levy has also received backing from the Socialists and Democrats group in the European Parliament.

Supporters argue that a targeted contribution from the iGaming and betting sector could raise billions of euros for EU-level priorities, including education, youth policy, mental health, prevention and action against illegal gambling.

The proposal remains politically sensitive because gambling taxation is currently handled at national level. Malta, one of the EU’s largest iGaming jurisdictions, has signalled caution. Prime Minister Robert Abela said fiscal sovereignty should remain within the competence of member states and that the EU budget should reflect realistic national reforms.

The debate is also being linked to Europe’s illegal market. Data cited by the European Casino Association and YieldSec estimated that illegal online gambling generated €80.6bn in 2024, compared with €33.6bn from licensed operators. Supporters of the levy argue that unlicensed operators reduce public revenue, weaken consumer protection and increase risks linked to addiction, money laundering, organised crime and access by minors.

The proposal is expected to feed into wider discussions on payment blocking, cross-border enforcement and the treatment of prediction markets, which have become a growing regulatory concern across Europe.