Divisions Emerge Across Member States Before Formal Proposal
A proposal to introduce a European tax on online gambling to help finance the next European Union budget has sparked intense debate and divided member states, even before the European Commission has presented a formal legislative measure. The potential new levy forms part of the Union’s new own resources intended to support the upcoming EU budget cycle. This initiative has pitted Southern European countries, where the gaming sector holds significant economic weight, against Western European states, led by France, which are more in favor of introducing the tax.
National capitals are currently discussing a measure that would require unanimous approval by all member states and has yet to be formally presented by the European Commission. The issue forms part of broader negotiations surrounding the next EU budget, with Ireland, holding the current presidency of the European Council, committed to promoting a comprehensive agreement by the end of the year.
Economic Projections and Conflicting Arguments
Supporters of the tax point out that the new levy could generate over €13 billion during the next budget cycle and help address the risks associated with gambling addiction. According to European Commission estimates, a 3% tax on the net turnover of the online gaming sector would generate approximately €1.9 billion annually.
However, the proposal has encountered fierce opposition from Malta, where the gaming sector is a strategic pillar representing approximately 12% of the national GDP. The Maltese government warns that increased taxation risks penalizing regulated operators, encouraging the illegal market, and pushing companies to relocate operations outside the European Union. Maltese Prime Minister Robert Abela reiterated Valletta’s firm stance, declaring that “Malta will not accept the introduction of EU-wide taxes designed to support the bloc’s spending”.
Malta has joined forces with other Mediterranean nations, including Italy, Portugal, and Spain, in opposing the proposal put forward by Socialist MEP Victor Negrescu, according to diplomatic sources cited by Politico. Italy’s reservations are particularly notable because, under European Commission estimates, Italy’s contribution would represent roughly 7% of the total tax revenue, a lower share than that of other major member states.
Perspectives from Advocates and Academia
Outside of political circles, opinions remain mixed. Former England goalkeeper Peter Shilton, who is actively involved in the fight against gambling addiction, supports the introduction of the tax. He argues that higher taxation would help reduce operators’ advertising investments and, consequently, consumers’ exposure to gambling.
Meanwhile, a more moderate view comes from the academic world. Economist Nicola Matteucci of the Polytechnic University of Marche observes that there is “a point at which prices exceed a certain level and demand decreases,” but clarifies that the phenomenon “is not as immediate a process as the industry suggests”. For the tax to ultimately come into force, unanimous approval from all 27 member states will be required, a threshold that, given current diplomatic divides, still appears distant.
