EGBA calls proposed EU online gambling levy fundamentally unworkable

(AsiaGameHub) –   The European Gaming and Betting Association (EGBA) has criticized a proposed EU online gambling levy that would be imposed alongside existing national gambling taxes, labeling the initiative as ‘fundamentally unworkable’.

According to the EGBA, an EU online gambling levy would solely favor unlicensed operators, coming at the ‘cost of consumer protection’ and cutting into member states’ tax incomes.

The European Parliament’s Budget Committee approved the EU’s upcoming long-term budget—the Multiannual Financial Framework (MFF) for 2028-2034—by a vote of 26 to 9 (with five abstentions). This framework references possible new direct revenue sources, such as an EU online gambling levy.

While the framework moves forward to the next phase, EGBA Secretary General Maarten Haijer is urging lawmakers to rethink the levy due to its possible effects on the sector.

Haijer stated: “Today’s vote is a provisional, conditional request for Member States to look into the concept of an EU online gambling levy. It is not a formal proposal or a final decision. At present, gambling is not standardized across the EU, and there is no legal foundation to outline, manage, or collect this type of levy. 

“Putting these legal barriers aside, adding another levy on top of existing national taxes—especially in a sector where licensed operators in certain Member States already face tax rates over 50% of their gross gaming revenue—would leave only one group better off: unlicensed operators.”

Victor Negrescu, Vice President of the European Parliament, put forward a unified levy on European online gambling and betting services during a plenary session in February, noting it could bring in an extra “€2bn to €4bn annually”.

For the levy to become a new direct revenue source for the EU budget, all 27 member states must agree unanimously via the EU Council.

The European Parliament is set to vote on the Committee’s stance at its late April plenary session. Following that, formal MFF negotiations will start, with a resolution anticipated by the end of 2026.

Haijer added: “Since they don’t pay taxes, unlicensed operators can already offer players more appealing products and prices, without any of the consumer protections that licensed operators have in place. 

“Introducing an EU levy would exacerbate this issue: it would grow the black market, undermine consumer protection for EU residents, and lower total tax revenues for Member States.”

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