The European Union Commission states that a proposed European Union-wide tax on online gambling can generate up to €13.3 billion for the next 7 years, which is half of what was originally estimated.
The plan may charge a 3% levy on online gambling operators’ gross revenue. This will be a part of the discussion during the EU’s 2028 to 2034 budget. If implemented, the Commission believes to bring in around €1.9 billion per year straight into the EU budget.
The gambling levy is one of the proposed revenue sources that is under review. A tax on electronic waste will generate about €15 billion, and revised tobacco taxation will raise to €11.2 billion.
The €13.3 billion estimate falls short, as MEP Victor Negrescu suggests and believes that the suggested measure can bring in €28 billion.
Online gambling is currently taxed at the national level across EU member states. Yet, the Commission believes that a bloc-wide levy can create direct funding for the EU budget without raising national contributions. Such a proposal must still get approval from member states and pass the EU’s legislative process.
The European Gaming and Betting Association (EGBA) criticised the proposal and called it “fundamentally unworkable.”
The levy might be difficult to enforce as there is a lack of gambling regulations across the EU. Additional taxes can push players toward unlicensed operators.
EGBA Secretary General Maarten Haijer said licensed operators in EU markets already face tax rates of more than 50% of gross gaming revenue. Extra charges will put the market at risk rather than strengthening it.
