The European Gaming and Betting Association (EGBA) has issued a sharp rebuke to a proposal from the European Parliament’s Budget Committee regarding the introduction of a Union-wide online gambling levy. The measure, floated as a potential “own resource” to fund the EU’s long-term budget, has been described by industry leaders as a move that would inadvertently strengthen illegal offshore operators at the expense of the licensed European market.
The friction arises from a recent push within the European Parliament, where MEPs have called for a 10% increase in the EU’s long-term budget to support core priorities such as defence, digital transition, and economic resilience. To fund this expansion, the Budget Committee identified iGaming as an untapped revenue stream, a move the EGBA argues ignores the complex, non-harmonised reality of European gambling law.
A Legal and Administrative “Non-Starter”
Maarten Haijer, Secretary General of the EGBA, was vocal in his opposition, noting that gambling is currently not harmonised at the EU level. Because each member state retains sovereignty over its own gambling legislation, there is no existing legal framework to define, administer, or collect a centralised levy. Haijer stated,
Today’s vote is a tentative call to explore an EU online gambling levy, not a proposal or decision. There is no EU harmonisation or legal basis to define or collect such a levy, and adding another charge on top of national taxes, in markets where licensed operators already face tax rates above 50% of gross gaming revenue, would risk strengthening illegal operators.
He pointed out that legal operators already face significant tax burdens, with some national rates exceeding 50% of gross gaming revenue. Stacking an additional EU-wide levy on top of these local taxes would make regulated products significantly less competitive than those offered by unlicensed offshore entities.
Impact on Consumer Protection and National Revenue
The EGBA’s primary concern centres on the “channelling” of players toward safe, regulated environments. By increasing the financial burden on licensed operators, the proposed levy could drive players toward the black market, where prices are lower due to zero tax compliance but consumer safeguards are non-existent.
This warning comes at a time when the legal landscape for offshore entities is already tightening. Only recently, the industry observed how a landmark CJEU ruling on the recovery of offshore gambling losses empowered players to sue unlicensed operators, a trend that could be reversed if the legal market becomes commercially unviable.
Furthermore, the EGBA argued that a Union-wide levy could actually reduce overall tax revenues for individual member states. If players migrate to illegal sites, the national tax base for gambling, which currently contributes billions to European economies, would inevitably shrink.
Comparison to National Levy Models
The debate in Brussels stands in contrast to localised efforts to reform gambling contributions. In the United Kingdom, for instance, the government is currently overseeing the gambling levy transition fund for 2026, which seeks to move from a voluntary to a statutory contribution model.
However, unlike the proposed EU levy, the UK model is built upon a harmonised national framework specifically designed to fund research, education, and treatment (RET) for problem gambling within its own borders. The EGBA argues that applying a similar logic at a multi-national level, where no such shared framework exists, is a recipe for administrative failure.
The Road to the 2028-2034 MFF
While the Budget Committee’s vote was tentative, the proposal is part of the broader negotiations for the Multiannual Financial Framework (MFF) for 2028-2034. The European Parliament is expected to vote on the committee’s opinion later this month.
For the levy to become a reality, it would require the unanimous approval of all 27 EU member states, a high bar considering the fierce protection member states traditionally maintain over their fiscal sovereignty. For now, the EGBA and its members remain on high alert, urging the Commission to focus on tackling online fraud and the illegal market rather than penalising the compliant sector.