The European Union is preparing a formal assessment of a proposed 1% online gambling tax that could become the bloc's first supranational levy on the sector. EU Budget Commissioner Piotr Serafin confirmed the European Commission is evaluating the option, which was proposed in February by Romanian MEP Victor Negrescu as a new revenue stream for the EU's 2028-2034 budget. The Socialists and Democrats group estimates the tax would raise $2.3 billion to $4.6 billion annually across all 27 member states, with proceeds earmarked for education, mental health, and addiction prevention. The proposal responds to industry estimates that illegal operators control roughly 71% of Europe's online gambling market—approximately $92 billion in 2024 compared to $38 billion for licensed sites. The levy represents the EU's first attempt to assert gambling oversight at the union level rather than leaving regulation solely to member states, as national governments including the Netherlands and Finland intensify crackdowns on unlicensed operators.
Negrescu Proposal Targets $2.3-4.6 Billion Annual Revenue for EU Budget
Victor Negrescu, a vice president of the European Parliament and Romanian MEP, proposed the 1% levy in February as a new "own resource" for the EU budget. The tax would apply to gambling gross revenue across all 27 member states and is estimated by the Socialists and Democrats group to generate $2.3 billion to $4.6 billion per year—between $16 billion and $32 billion over the seven-year budget cycle. Proceeds would be allocated to education, youth programs, mental health services, and addiction prevention initiatives. The tax would complement rather than replace existing national levies that operators currently pay.
Illegal Operators Account for 71% of Europe's $130 Billion Online Gambling Market
Negrescu has cited the scale of Europe's black market to justify the proposal. Industry estimates indicate that illegal operators account for approximately 71% of the continent's online gambling activity—roughly $92 billion in 2024 compared to about $38 billion for licensed sites. The proposal positions the EU-wide tax as a mechanism to address this imbalance while generating revenue for social programs.
Netherlands and Finland Escalate National Enforcement Against Unlicensed Operators
The proposal arrives as European regulators tighten enforcement at the national level. The Netherlands has moved to ban gambling advertisements and recently brought its largest illegal operator to court. Finland secured a criminal conviction of a streamer for promoting offshore casinos. These actions represent a broader trend of member states increasing pressure on unlicensed gambling operations.
Malta Opposes Tax on Fiscal Sovereignty Grounds
Malta, where gambling accounts for roughly 10% of GDP, has opposed the proposal. Prime Minister Robert Abela has stated that fiscal sovereignty should remain with member states. The European Gaming and Betting Association has also criticized the plan. The proposal has not been finalized—an agreement is targeted for late 2026, with any revenue collection years away. SBC News reported that a future levy could prompt the EU to clarify its stance on prediction markets, though this has not appeared in any official text.
FAQ
What is the proposed EU online gambling tax rate and estimated revenue?
The proposed tax is set at 1% of gambling gross revenue across all 27 EU member states. The Socialists and Democrats group estimates it would raise $2.3 billion to $4.6 billion annually, totaling $16 billion to $32 billion over the seven-year EU budget cycle from 2028 to 2034.
Why does Malta oppose the EU gambling tax proposal?
Malta opposes the tax on fiscal sovereignty grounds, as gambling represents roughly 10% of the country's GDP. Prime Minister Robert Abela has insisted that taxation authority should remain with individual member states rather than being transferred to the EU level.
