Members of the European Parliament have placed online gambling among the alternative funding options being discussed for the EU’s 2028-2034 budget. The discussion comes as lawmakers are searching for options that would help reduce the dependence on direct payments from member states. Other options on the table include a digital services levy, an extension of carbon border revenue, and a levy on crypto-asset capital gains.
A New Revenue Line for a Tight Budget
The gambling levy is linked to a measure promoted by Romanian MEP Victor Negrescu. Under this proposal, an EU-wide levy on online gambling and betting activity would be introduced, initially estimated at around 1%. The funds raised could be used for purposes such as funding education, digital skills, youth policy, prevention work, and support linked to addiction-related harm.
Proponents of the measure argue that gambling takes place internationally, whereas taxation remains a matter of national jurisdictions. A brand can serve players in several EU countries, yet the tax regimes may differ across markets. For lawmakers looking for ways to create new “own resources”, this gap becomes the reason for their approach.
Supporters of the idea have cited estimates of between €2bn and €4bn per year, and as much as €28bn during a seven-year budget period. The figure seems politically useful, but ultimately, the actual sum will depend on the basis for taxation. A charge on gross gambling revenue would be different from a tax on turnover, because the latter includes total stakes before winnings are paid.
The Black Market Argument Cuts Both Ways
Illegal gambling has become one of the central arguments in the dispute. Proponents argue that the levy debate should be tied to stronger EU-level action against unlicensed operators and to the recovery of public revenue lost to unregulated activity.
Industry associations raise the same argument but on the other side of the debate. According to the European Gaming and Betting Association, adding an EU layer will affect licensed gambling sites and won’t affect illegal ones. Higher tax pressure may hurt the competitiveness of regulated offers if the situation with law enforcement doesn’t change.
The legal route is no easier. Gambling regulation and taxation still fall within national responsibility across the bloc. For a new EU own resource to be introduced, the Own Resources Decision would require unanimous approval in the Council and ratification by every member state under national procedures.
What Happens Next
At this point, the proposal serves as a budget signal, not a tax bill. The critical issues remain open:
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Who will pay;
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What will be taxed;
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Who will collect the money;
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Whether national gambling duties will remain unchanged or just be added to those at the EU level.
Brussels is testing politically sensitive revenue sources because the next budget cycle is crowded with defence, debt, industry, and green transition costs. The gambling sector is now inside that search. That alone changes the policy map, even if the levy never reaches the final budget package.
