EGBA Labels EU iGaming Levy Proposal as “Fundamentally Unworkable”

(AsiaGameHub) –   The European Gaming and Betting Association (EGBA) has voiced its opposition to a proposal for a European Union-wide online gambling levy. While supporters see the tax as a way to generate new revenue for the EU budget, the EGBA has criticized the plan as “fundamentally unworkable.”

EU Considers Union-Wide iGaming Tax

In a formal statement, the EGBA raised major concerns regarding the potential EU iGaming tax. The measure was recommended by the European Parliament’s Budget Committee during a preliminary vote on the 2028-2034 Multiannual Financial Framework (MFF). The committee suggested the union-wide levy as a possible source of additional funding.

It is important to note that the vote was exploratory, intended to gauge the stance of EU member states on the idea.

Discussing the matter, the EGBA warned that such a measure would notably increase the financial strain on operators. The association predicted that this could compromise safe gaming efforts across the EU, as it would favor illegal operators by making regulated companies less competitive.

Additionally, the EGBA pointed out that such a levy would likely result in lower tax revenues for individual EU member states.

Implementing such a proposal would require the unanimous agreement of all 27 member states.

Tax Proposal Viewed as a Boon for the Black Market

Commenting on the situation, Maarten Haijer, the secretary general of the EGBA, highlighted further issues, noting that gambling is not currently harmonized at the EU level. Consequently, there is no legal framework to define, manage, or collect such a tax.

Haijer added that any potential levy would be added to the national taxes that operators are already required to pay. Given that some countries already have tax rates exceeding 50% of gross gaming revenue, the secretary general argued that such a levy would essentially benefit the black market.

Because they pay no tax, illegal operators can already offer players more attractive products and prices without any of the consumer safeguards that licensed operators provide. Adding an EU levy would make this situation even worse: expanding the black market, harming consumer protection for EU citizens, and reducing overall tax revenues for Member States.

Maarten Haijer, secretary general, EGBA

While the recent vote was tentative, the European Parliament is scheduled to vote on the Committee’s opinion later this month, which will precede the start of budget negotiations.