EU Parliament to Discuss Online Gambling Levy for Budget
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Key Takeaways:
- EU Parliament to discuss new online gambling levy.
- Proposed tax could fund the bloc’s €2 trillion budget.
- Levy estimated to generate €2-4 billion annually.
- EGBA calls the proposal "fundamentally unworkable".
- Parliament seeks new EU-wide revenue streams.
MEPs and Piotr Serafin, the EU’s budget commissioner, are scheduled to discuss a potential new tax on online gambling and betting. This discussion will take place on Wednesday evening in Strasbourg. The proposed levy aims to help fund the bloc’s proposed €2 trillion long-term budget.
Context and Proposal Details
The discussion arises amid increasing pressure on capitals to agree on new EU-wide revenue streams. These streams are intended to finance upcoming priorities and facilitate the repayment of Covid-era debt. Victor Negrescu, a socialist member of Parliament’s budget committee who made the initial proposal, highlighted the online gambling market as one of the fastest-growing digital industries. He noted that this sector generates tens of billions of euros, yet a substantial portion of these profits currently avoids fair taxation.
Negrescu further estimated that an EU-wide tax on online gambling and betting could generate between €2 billion and €4 billion annually. Over the entire seven-year budget cycle, this could amount to as much as €28 billion. He pointed out that the taxation of the online gambling sector currently varies significantly across member states. The European Commission, in its July proposal, outlined a package of five EU-wide levies, including a corporate tax, an e-waste levy, and new duties on tobacco products.
Through these 'new own resources', the Commission anticipates raising approximately €58.5 billion annually (in 2025 prices) to help fund the budget and repay the Covid-era recovery loan. However, there is currently little consensus among capitals, as unanimous agreement is required for any new revenue stream to be implemented. While supporting the Commission’s initiative for new 'own resources', the Parliament has put forward three additional proposals for potential revenue sources, which include a digital services tax, a duty on crypto-asset capital gains, and a levy on online gambling, affecting how real money online casinos operate. Christiane Canenbley, the director for Revenue and Multiannual Financial Framework at the Commission’s DG BUDG, stated at a recent Euractiv event that they are "more than happy to look into it and find the best way forward."
Industry Reaction and Concerns
The European Gaming & Betting Association (EGBA), an interest group representing online gaming operators, has voiced strong opposition to the proposal. EGBA described the potential levy as "fundamentally unworkable." The association further argued that implementing such a tax would inadvertently benefit illegal operators within the market.
