A significant shift in fiscal policy is being debated within the European Union that could see the introduction of a single EU-wide tax on the online betting and gaming sector.
Unlike traditional national duties, this tax would function as a direct revenue stream for the EU’s “own resources” system to fund critical education and youth initiatives.
Strategic Funding and Tax Harmonization
The proposal has gained public support from Victor Negrescu, a Vice-President of the European Parliament, who framed the initiative as a method to strengthen EU finances without increasing the burden on individual national budgets.
Supporters argue the levy would address two primary objectives:
- Funding Priorities: Providing sustainable resources for EU-wide education and skill-building programs.
- Market Stabilization: Addressing the vast disparities in national profit taxes, which currently range from 5% to nearly 40% across member states. Critics suggest these gaps encourage operators to seek low-tax jurisdictions while continuing to provide services across European borders.
Internal research cited at the parliamentary level estimates the sector generated approximately €130 billion in 2022 revenue, with current volumes approaching €200 billion. Proponents suggest that even a modest 1% levy could generate tens of billions for the central EU budget.
Legal Hurdles and Industry Impact
Despite the momentum in Brussels, any new EU tax faces a significant legal “gate.” The proposal requires unanimous approval from all 27 member states. A single veto, particularly from a nation with a substantial iGaming footprint, could effectively block the legislation.
Industry experts, including Giulio Coraggio of DLA Piper, suggest that the biggest concern for operators is the potential for double taxation. There are also fears that such a levy might only impact compliant, licensed firms, inadvertently widening the gap between regulated brands and offshore, unlicensed competitors.
With Europe’s online gross gaming revenue (GGR) reaching €47.9 billion in 2024 and nearing a 40% market share, the outcome of this “trial balloon” in Brussels will have profound implications for the future of the continental iGaming landscape.
