Milen Totev, Chair of The Association of Organisers of Gambling Games and Activities in Bulgaria (AOGGAB), has dismissed the proposals for harmonisation of gambling tax across Europe.
Speaking to SBC News, Totev warned that whilst this type of proposal feels simple and politically straightforward, ‘it would create chaos and uncertainty’.
Earlier in the year, EU Member States were pushed towards embracing the potential shift in approach to taxation, following a proposal from Victor Negrescu, Vice President of the European Parliament and member of Romania’s Social Democratic Party (PSD).
Negrescu framed the proposal as both an economic and social measure that could benefit the overall regulation of gambling in Europe.
However, Totev emphasised that the proposal was very much unfeasible and would lead to significant uncertainty in the sector.
“In the European Union, gambling is regulated in such a way that each member state determines the rules for the sector independently within the framework of its national legislation and in compliance with the general principles of the EU”, he highlighted.
Totev added that as a result, ‘a common tax for all online operators would mean a change in the current logic of the European framework’.
He continued: “If such a measure appears, many questions will arise: who collects it, how is it distributed between the countries, how is the size of each market taken into account, how is an additional burden avoided for licensed operators, and how is the illegal online market treated.
“Such a change will create chaos and uncertainty not only in Europe. Markets are already connected on a global scale. One operator, one provider or one technology company often operates across several jurisdictions.
“If a common fee is introduced without a clear legal and practical framework, the impact will be felt far beyond the online segment itself. Our position is that the European conversation is important, but it must take into account national regimes and the reality of individual markets.
“A measure that increases the burden on licensed operators without limiting the illegal market will not solve the underlying problem.”
Looking ahead, he outlined that the key fight for the Balkan region was against the black market – following the formation of the Balkan Gaming Federation (BGF).
Closer collaborations between nations could be key to this, according to Totev, who described it as one of the ‘main tasks of the BGF’.
He stated: “BGF will work for faster exchange of information between associations, common initiatives against the illegal market and better relations with institutions in each country.
“Legal operators are a natural partner in this process. Every operator who has a license, pays their taxes and complies with the rules has an interest in illegal sites being identified and reported. This is not only business protection, but also consumer and state interest protection.”
He pinpointed the example of Croatia as one that underpins the importance of a detection platform for illegal operators, with efficient detection being cited as vital in the battle against black market growth.
