EGBA Criticizes Proposed EU Online Gambling Levy
The European Gaming and Betting Association warns the levy could favour illegal operations, compromise consumer protection, and diminish tax revenues.
Key Takeaways
- EGBA opposes a potential EU levy on online gambling, citing benefits to illegal operators.
- The levy could harm consumer protection and decrease tax revenues for EU Member States.
- The European Parliament will vote in late April 2026, with negotiations concluding by year-end.
The European Gaming and Betting Association (EGBA) has expressed serious concerns about the European Parliament's recent consideration of a potential EU online gambling levy. The proposed levy, part of discussions for the EU's Multiannual Financial Framework (MFF) for 2028-2034, could impact existing national gambling taxes and consumer protection.
Implications of the Proposed Levy
The levy would be an additional layer on top of current national taxes for gambling across the European Union. EGBA argues that this would serve only to benefit illegal operators. Legal complexities arise as gambling is not harmonized at the EU level, with no legal infrastructure to define, administer, or collect such a levy. Consequently, the implementation could be considered fundamentally unworkable.
Risks to Consumer Protection
According to Maarten Haijer, Secretary General of EGBA, adding an EU levy could further expand the black market in online gambling. Illegal operators, who evade taxes, often attract consumers with more enticing offers devoid of the robust consumer protections found with licensed operators. "This creates a situation where the black market flourishes, to the detriment of consumer safety and tax revenue for EU Member States," Haijer stated.
Legal and Taxation Challenges
For any new EU-driven revenue stream, including a gambling levy, unanimous agreement from all 27 member states through the EU Council is required. Without this consensus, the proposal cannot advance legislatively. EGBA stresses that raising tax burdens in markets where operators already face tax rates exceeding 50% of gross gaming revenue could be detrimental to the legal market, as Haijer points out.
The Next Steps for Legislation
The European Parliament's full chamber is scheduled to vote on the Budget Committee's opinion in late April 2026, following which official negotiations for the MFF will commence. These negotiations are expected to reach a conclusion by the end of 2026. Stakeholders throughout the regulation sector are closely watching developments.
EGBA's Position
EGBA maintains that current structures should favor national discretion in gambling taxation. They argue for systems that improve legal compliance and economic viability rather than adding layers which could grow the underground market. "Legal operators require feasible taxation scenarios to sustain operational compliance," Haijer emphasized.
Frequently Asked Questions
What is the EGBA's stance on the EU online gambling levy?
EGBA argues that the levy would benefit illegal operators, weaken consumer protection, and reduce tax revenues for Member States.
What challenges does the proposed levy face?
The proposal needs unanimous agreement from all 27 EU Member States and faces legal challenges as gambling is not harmonized at the EU level.
When will the next steps for the EU online gambling levy be decided?
The European Parliament is expected to vote on the proposal in late April 2026, with formal negotiations concluding by the end of the year.
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About the author
Eleanor Whitfield
Regulatory Affairs Correspondent
Eleanor Whitfield tracks gambling legislation, licensing decisions, and regulator enforcement across key markets — from the UKGC, MGA, and Germany's GGL to Spain's DGOJ and the state-by-state map in the Americas. The reporting answers three questions precisely: what changed, where, and who it affects, with jurisdictions, effective dates, and penalty figures named exactly as published. Compliance officers and operators read Eleanor Whitfield to know which rulebook moved before their next board meeting.
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