EU Considers 3% Online Gambling Tax to Raise €13.3bn for Future Budget

EU Looks at New Gambling Tax

The European Commission has come up with a new idea in the field of online gambling: taxing online gambling. The plan would impose a 3% tax on gross gaming revenue on operators. The measure would be implemented in all the EU member countries.

The tax could generate an estimated €13.3 billion from 2028 to 2034, according to the Commission's estimates. This equates to approximately €1.9 billion per year. The proposal is part of the negotiations for the EU's next seven-year budget. A budget package valued at almost €2 trillion is being prepared.

The funds would be used to finance future expenditure plans. It would also assist in paying off loans incurred during the Covid-19. But it has already been part of a broader discussion on EU funding in the future.

Lower Than Earlier Forecasts

Some supporters in the European Parliament had suggested the tax could raise up to €28 billion over seven years. The Commission’s current estimate reaches less than half that figure.

That difference may lead to further questions during budget talks. Some officials may want to review the assumptions behind the new forecast. The lower figure also highlights the challenge of predicting future gambling revenue.

Approval May Be Difficult

Any new EU tax requires support from all 27 member states. That means one country could stop the plan from moving forward. This rule may create difficulties for the gambling tax proposal.

Many industry observers are watching Malta closely — the country is home to many large online gambling companies. Because of that position, Malta may have concerns about the new measure. Meanwhile, Cyprus currently holds the Council presidency. Officials are expected to present an updated budget proposal around June 10.

Other Tax Ideas Remain on the Table

The gambling tax is only one option being considered. The Commission has also reviewed several other possible revenue sources:

• A 0.1% tax on crypto transactions

• A crypto capital gains tax

• Carbon-related taxes and import charges

• Taxes linked to electronic waste and tobacco revenue

Long Budget Talks Ahead

EU officials continue looking for ways to fund future spending. At the same time, member states remain cautious about new taxes. France has indicated it wants stronger new revenue sources before backing a final budget deal.

Beyond the financial figures, the proposal shows a larger challenge — finding enough money for future EU plans while keeping all member states on board. The gambling tax could become part of that solution, but its future remains uncertain.