Four EU countries oppose a single tax on online gambling

Brussels' proposal to introduce a 1–3% tax on the online gambling industry's net revenue is facing growing antagonism, with an increasing number of countries lining up against the European Commission's plan to generate an estimated €1.9 billion annually for the EU budget.

EU Hits the Wall

For Malta, where the online casino industry constitutes 12% of its GDP and holds significance equal to car manufacturing in Germany, higher taxes will cripple the country’s economy, boost illegal operators, and force companies to leave. If enacted, the proposed levy would saddle local operators with an estimated €165 million in additional annual costs.

The largest share of the proposed tax is expected to hit Spain, with annual costs estimated at around €414 million. Portugal argues that the new tariff could undermine funding for its state-run betting and lottery system, with part of the proceeds allocated to healthcare and social programmes. Italy has also sided with the proposal's critics, despite facing a considerably smaller financial burden than its regular contribution to the EU budget.

Backlash is Growing

The four EU member states and industry stakeholders warn that the additional costs would weaken the regulated market, create less favourable conditions for players, and play into the hands of rogue operators.

The European Gaming and Betting Association (EGBA) has already criticised the proposed act, warning that it could fuel the growth of the black market and trigger legal challenges.

For European players, the EU’s imposition could translate into higher costs and fewer competitive offers from licensed operators. Industry representatives warn that increased taxation may lead to reduced promotions, stricter terms, and less attractive gambling conditions, while pushing some users toward unregulated platforms with fewer consumer protections.

European David Mounts Online Gambling Tax Fight Against EU Goliath

Although EU officials have yet to table a formal proposal, unanimous backing from every member state would be required to move forward with an EU-wide gambling tax. A single veto from Malta alone would be enough to stop the plan.