The European Commission (EC) must consider and provide feedback on whether an EU tax on gambling would represent a feasible and effective policy approach.
The command follows the submission of an ‘oral question’ by Members of the European Parliament (MEPs), asking the Commission to assess the feasibility and wider considerations of imposing a ‘unified levy’ on online gambling and betting providers licensed by EU member states.
A measure for a common gambling tax was first suggested by Romanian MEP Victor Negrescu on 18 February, who has argued that the sector should face a ‘common tax’ to fund new European education initiatives and workforce re-skilling programmes of the EU’s next budget cycle.
Negrescu has yet to propose any formal legislation. Instead, his initial objective is to trigger an institutional debate within EU states and courts on whether the online gambling sector should help finance future priorities of the Union’s budget.
In outlining the concept, Negrescu stated: “My proposal is simple and responsible – a European levy on the online gambling and betting industry, applied equally to the already existing national turnover taxes, while fighting for a clear EU directive against illegal unlicensed platforms.”
The EC’s question has gathered the backing of 40 MEPs from multiple member states, who have asked the Commission to evaluate whether such a levy could form part of the EU’s future “own resources” under the next Multiannual Financial Framework (MFF).
Negrescu has not proposed a formal tax rate, though discussions have referenced the potential impact of a levy in the region of 1% on online gambling revenues. Estimates cited in the submission suggest that a harmonised EU charge on online gambling services could generate between €2bn and €4bn annually, with around €28bn required to fund projects across a full EU budget cycle.
Supporters of the initiative argue that the online gambling sector has become increasingly cross-border and reliant on the EU’s digital infrastructure and single market, while taxation and regulatory frameworks remain largely fragmented at the national level. According to the MEPs behind the proposal, this fragmentation can create distortions in the internal market and complicate coordinated enforcement efforts against illegal and unlicensed operators.
However, the idea has already drawn sharp criticism from industry stakeholders. Maarten Haijer, Secretary General of the EGBA, commented: “Such a proposal is fundamentally unworkable – gambling is not harmonised at EU level, and there is no legal basis or mechanism to collect such a levy.
“Even so, adding yet another tax to online gambling operators licensed in the EU – who already operate in a heavily taxed and highly regulated environment – would only benefit illegal operators who pay no tax.
“Imposing an EU tax on top of existing national taxes would only make this situation worse: expanding the black market, harming European consumer protection and ultimately leading to lower tax revenues for Member States.”
For now, the oral question simply obliges the Commission to assess the legal feasibility, enforcement considerations and policy implications of such a levy as discussions begin on the financing structure of the EU’s next budget cycle.
Any move towards a harmonised gambling tax would ultimately require approval from EU member states as part of negotiations on the next Multiannual Financial Framework.
