EGBA Criticizes Proposed EU Online Gambling Levy

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.