Brussels Prices Online Gambling Levy at €13.3B for Next Budget

Brussels Prices Online Gambling Levy at €13.3B for Next Budget
The European Commission has put a fresh number on a possible EU-level online gambling levy. The estimate gives the idea new weight, even though approval remains a major political hurdle.

A Commission document seen by Euronews estimates that a 3% levy on the net turnover of the online gambling sector could raise about €1.9bn a year for the EU budget. Across the 2028-2034 budget cycle, the figure would amount to around €13.3bn.

The estimate gives the idea a new budgetary frame. Earlier political discussion around the levy focused on a lower 1% charge and linked the money to education, youth policy, digital skills, mental health, and addiction prevention.

Why Brussels Is Looking at Gambling

The Commission is drafting the EU’s budget for the period from 2028 to 2034. Its value is estimated at about €2 trillion and will include funds that should be allocated to repayment of borrowing under the NextGenerationEU recovery program.

This has compelled Brussels to look into “own resources.” These are revenue streams that could relieve the burden on direct payments from member states.

Online gambling is being discussed alongside digital services and crypto assets. A digital services levy could raise about €5bn a year, according to estimates made by the Commission and quoted by Euronews. Crypto tax options are harder to estimate because of market volatility and data gaps.

Design Questions Remain Open

The gambling tax is yet to have its technical and legal structure defined. According to the Commission document, gambling is defined differently by various European Union member states. Tax rules also differ widely across the bloc.

That creates practical questions. The levy could be calculated either as an operator margin or gambling revenue or some other metric. It could also be charged indirectly to players, depending on the final model.

Each option would impose a different tax burden on operators and national markets. The turnover levy would operate differently from the gross gambling revenue levy. The tax base may become just as controversial as the rate.

Malta and Industry Groups Signal Resistance

A few EU countries have demonstrated initial support for taxing gambling. However, Malta is expected to be the hardest opponent due to its significant industry of online gaming.

Maltese MEP David Casa has said a future Nationalist government would veto any attempt to impose a tax at the EU level on online betting. He argued that such a decision would negatively impact licensed EU-based operators and force players to use third-country platforms.

The European Gaming and Betting Association holds the same view. The group says that an additional EU tax would apply only to legal operators, ignoring the illegal gambling sites. It also warns that national gambling taxes are already high in some jurisdictions.

What to Watch Next

The proposal still remains distant from becoming law. New revenue generated through an EU own resource requires unanimous consent from all 27 member states, as well as national approval procedures where required.

For the gambling sector, the risk is not that of facing a tax bill tomorrow. The actual difference lies in the politics. Online gambling may now be seen as a possible EU budget line, along with other revenue sources, including digital platforms and crypto-assets. However, the absence of a harmonized gambling framework and resistance from Malta make its adoption uncertain.

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