The EGBA claims that the concept of an EU online gambling levy is “unworkable”

(AsiaGameHub) –   The industry association states that an EU-wide charge on online gambling lacks a legal foundation.

Belgium.- The European Gaming and Betting Association (EGBA) has reacted to the concept of an EU levy on online gambling, labeling the idea “unworkable”. The suggestion was raised by the European Parliament’s Budget Committee within its opinion on the EU’s Multiannual Financial Framework (MFF) covering 2028-2034.

According to the EGBA, imposing an EU online gambling charge in addition to current national gambling taxes would also favor illegal gambling operators and undermine consumer protection for EU citizens. The group contends this action would ultimately lead to lower tax income for EU member states.

Maarten Haijer, Secretary General of EGBA, stated: “Gambling is not currently harmonised at the EU level and there is no legal basis to define, manage, or gather such a levy. Even putting these legal hurdles aside, imposing another charge on top of existing national taxes – in an industry where licensed operators in some Member States already face tax rates over 50 per cent of gross gaming revenue – would have only one beneficiary: illegal operators.”

Haijer continued: “Since they pay no tax, illegal operators can already provide players with more appealing products and prices, free from the consumer protections offered by licensed operators. Introducing an EU levy would exacerbate this problem: growing the black market, damaging consumer safety for EU citizens, and decreasing total tax revenues for Member States.”

The EGBA emphasized that the European Parliament’s Budget Committee’s opinion was a very preliminary and conditional suggestion for member states to consider the idea of an EU online gambling levy, not a firm proposal. Any move to establish a new direct revenue source for the EU budget would need the unanimous consent of all 27 Member States via the EU Council.

The European Parliament is scheduled to vote on the Committee’s opinion during its plenary session next week. After this, official MFF discussions will commence, with an agreement anticipated by the end of 2026.

In a related development, the EGBA has submitted evidence to the European Commission’s call for evidence concerning the forthcoming EU Action Plan on Fighting Online Fraud. In its submission, it advocated for coordinated EU measures to combat fraudulent gambling websites and applications that misuse the standing of lawful operators.