Members of the European Parliament (MEPs) will begin discussions in Strasbourg regarding the application of a ‘unified tax’ on online gambling and betting operators licensed in the European Union.
The discussion, which will begin on Wednesday 27 May, will be led by EU Budget Commissioner Piotr Serafin. It comes as Brussels continues to review proposals to support the bloc’s proposed €2trn Multiannual Financial Framework (MFF) for 2028–2034.
The creation of a European gambling levy is the directive of Victor Negrescu, Vice President of the European Parliament and member of the Budget Committee.
Negrescu has returned to Strasbourg with his proposed 1% levy which has been backed by the Socialists & Democrats (S&D) Group. The levy will target major online gambling and betting operators, and will aim to unlock additional funding for education, youth and health initiatives.
Following its proposal, the S&D Group stated that a limited levy of around 1% on revenues or turnover generated by major online gambling operators aims to raise between €2bn and €4bn annually, potentially reaching between €14bn and €28bn across the EU’s seven-year budget cycle.
The S&D Group has backed the gambling levy as an EU funding mechanism that can help the bloc repay Covid-era recovery borrowing and finance future European priorities, including mental health services, addiction prevention programmes and youth initiatives.
In comments provided to iGaming Expert, Negrescu argued that Europe’s gambling sector has evolved into one of the bloc’s largest digital industries, generating “tens of billions of euros annually” while increasingly operating across borders under the framework of the EU single market.
Negrescu stressed that the proposal should not be viewed as an additional burden on consumers but rather as a targeted contribution from major operators benefiting from European market access.
“Every day in this House, we call for more investments, but citizens also expect us to answer how we finance everything fairly and responsibly,” Negrescu told iGaming Expert.
The Vice President stated that the levy could help underpin investments in education, youth programmes, mental health services, addiction prevention and initiatives protecting minors, adding that Europe needed to establish “topic-based financial streams” similar to funding models already applied by national governments.
Negrescu: levy can help beat black market
As author Negrescu further linked the proposal to wider concerns surrounding unregulated gambling activity, warning that illegal online gambling weakens public revenues while exposing consumers to heightened risks.
“We take up the initiative in times when Europe’s online gambling and betting market continues to expand rapidly, generating tens of billions of euros annually while increasingly operating across borders and benefitting from the single market,” Negrescu stated.
“According to industry estimates, illegal online gambling already represents around 71% of the market in Europe, leading to major losses in public revenue, weaker consumer protection and increased risks linked to money laundering and organised crime.”
The S&D Group has argued that the levy should be supported by coordinated EU-wide measures against illegal gambling to strengthen its long-term viability as a permanent EU funding mechanism.
Negrescu continued: “Considering a 1% flat tax on revenues or turnover, the increase of the market share of the online industry, and new actions against illegal platforms, this proposal could generate between €2bn and €4bn annually during the next long-term EU budget cycle, potentially reaching between €14bn and €28bn between 2028 and 2034 – an amount comparable to the current budget for Erasmus+ student exchanges.
“This proposal opens discussion on potential new resources and topic-based financial streams, similar to national funding models, that could secure wider support among EU member states.”
Gómez López: EU needs hard debt busting measures
Committee member and MEP Sandra Gómez López said that the levy forms part of a wider S&D package, aimed at creating “sustainable, predictable and resilient” revenue streams for the Union budget.
“We welcome the Commission’s efforts to identify new resources,” Gómez López said.
“The interim report on the next MFF also puts new ideas on the table including an online gambling and betting levy, digital services taxation and measures linked to crypto assets.”
She further urged member states to break the deadlock surrounding EU revenue reforms, calling for new funding mechanisms capable of generating at least €60bn annually to support both repayment of NextGenerationEU debt.
“We call on the member states in the Council to unblock the stalemate observed since 2020 on a basket of new genuine own resources to reach a level of revenue of at least €60 billion per year.”
Trade Body The European Gaming & Betting Association (EGBA), however, has criticised the proposal, calling the concept “fundamentally unworkable” and warning that additional EU-wide taxation risks undermining regulated operators while benefiting black-market providers.
The European Commission has separately proposed five new EU-wide revenue streams, including tobacco duties, e-waste charges and corporate taxation measures – targeting approximately €58.5bn annually through new funding sources.
Yet any EU-wide tax mechanism will require unanimous support from member states – a political hurdle that has repeatedly stalled common fiscal initiatives in Brussels related to the harmonisation of gambling laws between member states.
For Europe’s gambling sector, the discussions mark the first serious attempt to position online betting as a direct contributor to EU strategic funding priorities, potentially opening a new chapter in how gambling taxation is debated across the bloc.
