The proposed collective gambling tax across the European Union is making progress, news that will likely lead to further sleepless nights for gambling operators across the continent.
A European Parliament (EP) official confirmed to SBC News that the proposed uniform 1% tax on gambling across the EU had ‘gained momentum’ in broader conversations around the bloc’s budget after being proposed by EP Vice President Victor Negrescu in February.
Currently under Cypriot Presidency, the Council of the European Union is devising plans to establish a massive Multiannual Financial Framework for the years between 2028 and 2034 that would generate billions of Euros to ensure the political block’s sustainability.
Negrescu is proposing that the 1% gambling tax form is part of these plans. The levy has gained the support of the EP”s Socialists and Democrats (S&D) political union, with proponents arguing billions of euros could be generated for EU social funds.
The goal is for an official agreement to be reached by the end of 2026, with the subsequent adoption of legislative acts in 2027, and release of fresh EU funds from January 2028 onwards.
Gambling tax splits EU stakeholders
Progress on the framework was discussed at the latest Council meeting in Brussels between a group of 16 countries known as the ‘Friends of Cohesion’.
One of these 16 nations is Malta, which is currently treading carefully – unsurprising given how important gambling is to its economy, accounting for roughly one-tenth of annual GDP, and also given the jurisdiction’s other legal battles with the EU around international licensing.
Following the meeting, Malta PM Robert Abela remained adamant that fiscal sovereignty should be kept within the competence of the Member States, and that the Budget “must reflect realistic and nationally-based reforms”.
Meanwhile, the EP spokesperson shared that the discussion around a unified gambling tax “has gained momentum in the broader debate on the EU’s next long-term budget”.
They continued: “Vice-President Negrescu has been actively advancing the idea that a targeted European contribution from the online gambling and betting sector should be part of a wider package: not only to raise additional EU revenue for education, youth, mental health and prevention, but also to strengthen the EU’s response to illegal gambling platforms.”
Focusing on the illegal gambling aspect, the spokesperson highlighted data from the European Casino Association and YieldSec, showing that illegal online gambling operators generated around €80.6bn in 2024 – representing 71% of Europe’s online gambling activity when pitted against the €33.6bn generated by its licensed counterpart.
“This means that unlicensed operators deprive public budgets of revenue, weaken consumer protection, increase risks linked to addiction, money laundering and organised crime, and undermine safeguards for minors.”
What was further revealed by SBC News’ source was that a potential future levy will also tackle core anti-black market strategies such as payments blocking, improved international coordination, and bringing clarity on where the Union stands when it comes to prediction markets – a topic well familiar to the gambling industry.
Rounding off their statement, they added: “The proposal is not intended to affect national licensing systems or replace national tax revenues.”
In Brussels, Piotr Serafin, European Commissioner for Budget, Anti-Fraud and Public Administration, confirmed that the Commission is preparing an objective assessment of the options available to the European Parliament, including the online gambling levy, and will present the assessment in due time.
