The prospect of a potential EU-wide gambling tax across member states that has lingered in recent months has triggered inevitable backlash from the Maltese government.
Partit Nazzjonalista (PN) MEP, David Casa, has stated that should his nationalist party win the upcoming election, then the proposals of Victor Negrescu would be vetoed.
Such is the nature of the EU process that Malta would singlehandedly hold the power to thwart any taxation change, as Victor Negrescu emphasised that it would have significant damage on the Maltese economy, with 10% of the GDP stemming from the gambling sector.
Malta’s general election is edging ever closer on the 30th of May, with many polls predicting that the PN will claim victory at the polls.
The plans of Negrescu, who is the Vice President of the European Parliament and a member of the Budget Committee, have largely been viewed as significantly ambitious but could enhance the debate around how the EU unites in efforts to tackle the black market.
However, with Malta underpinning its plans to rally back against the proposals, it seems this route is essentially closed to EU regulators.
It followed efforts for a harmonised tax, which were also met with much criticism, embodied by Milen Totev, Chair of The Association of Organisers of Gambling Games and Activities in Bulgaria (AOGGAB), who warned that they go against the overall logic of the European Union.
There appears to be a concerted effort from corners of the European Union to ensure alignment in the fight against illicit operators, however, bringing on board every member state in any future action is proving to be a significant obstacle.
A 1% levy does have some backing from parties in the EU, with a discussion set to continue today around its feasibility.
Calls for the levy will be spearheaded by EU Budget Commissioner Piotr Serafin as a part of an examination from Brussels over its backing of the bloc’s proposed €2trn Multiannual Financial Framework (MFF) for 2028–2034.
Previously providing an update 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 highlighted 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.
A harmonisation of tax rates, or a member-wide levy are going to be a challenge for the EU in terms of the likelihood of them getting over the line. However, when it comes to organised crime, the EU has taken on a harmonised approach and given the scale of the issue of unlicensed gambling, a united strategy should be a serious proposal.
Given the importance of gambling revenue to the Maltese economy, it is in many ways unsurprising that they are reluctant to burden their country’s operators with a further tax, especially as the country heads towards an election.
Yet, for the long-term sustainability and success of the industry, an EU effort to cripple black market engagement is something that shouldn’t be handicapped by domestic priorities.
Whilst it is something of a completely different challenge – aligned efforts across the EU have been enforced in other sectors to tackle illicit activity, which will renew optimism that a universal effort can be found on tackling unlicensed gambling across the EU.
