EU committee to consider international tax on gambling

(AsiaGameHub) –   Legislators have advanced toward enacting an EU-wide tax on gambling income, though the timeline remains distant for the time being.

In February, Victor Negrescu, Vice President of the European Parliament and a Budget Committee member, introduced a proposal for a 1% tax on gambling.

On Wednesday, 27 May, the EU Budget Committee will convene to discuss the potential and, more crucially, the necessity of such a measure, led by Piotr Serafin, the EU Budget Commissioner.

The Socialists and Democrats (S&D) political faction has endorsed the proposal, with supporters asserting that the tax would provide supplementary funding for health, education, and youth programs across the EU.

The specific details of the proposal are not yet fully clarified. What is known is that the 1% tax would be imposed on either gambling revenue or turnover across the 27 EU member states.

Both sides cite illegal gambling

S&D estimates suggest the tax could generate between €2bn and €4bn annually, and up to €14bn to €28bn over the EU’s seven-year budget period. 

The levy might receive positive consideration in Brussels, where EU authorities are examining methods to raise funds for the proposed 2028-2034 Multinational Financial Framework (MFF) – a plan valued at €2trn.

Sandra Gómez López, Co-Negotiator on Own Resources for the EU Budget in the Budget Committee, stated: “According to the S&D Group position, an ambitious set of new genuine own resources is essential for an ambitious MFF capable of addressing the increased needs of our citizens and businesses. 

“As noted in the MFF Interim Report adopted in April 2026, we require sustainable, predictable, and resilient revenue streams for the Union budget.”

Negrescu added: “We are initiating this effort at a time when Europe’s online gambling and betting sector continues to expand rapidly, generating tens of billions of euros annually while increasingly operating across borders and leveraging the single market.

“Industry estimates indicate that illegal online gambling already accounts for approximately 71% of the European market, resulting in significant losses in public revenue, diminished consumer protection, and heightened risks related to money laundering and organized crime.”

The European Gaming and Betting Association (EGBA), a trade association for the EU gambling sector, has been critical of the proposal from the outside. Maaten Haijer, Secretary General of the EGBA, described the tax as “unworkable” when it was first mentioned in February.

Similar to other trade associations, the EGBA has pointed to the black market as a key risk factor – a sentiment that aligns with Negrescu’s views mentioned earlier. 

The organization argues that taxing gambling could prompt operators to adopt defensive measures, pushing customers toward illegal companies – an argument similar to that raised by the UK’s Betting and Gaming Council (BGC) during last year’s tax discussions.

According to a YieldSec report cited by the European Casino Association (ECA), the EU’s black market is costing approximately €20bn in tax revenue annually. The EGBA made a comparable claim in July of the previous year.

SBC News has contacted the EGBA for comment regarding next week’s meeting.