EGBA Slams EU iGaming Levy Proposal as “Fundamentally Unworkable”

The European Gaming and Betting Association (EGBA) weighed in on a proposal to introduce a European Union-wide online gaming levy. While proponents identified this as an opportunity to create new EU budget revenue streams, the EGBA slammed the proposal as “fundamentally unworkable.”

EU Eyes Unionwide iGaming Levy

In its official release, the EGBA expressed significant concerns about a mulled EU iGaming tax. The measure was proposed by the European Parliament’s Budget Committee in an opinion vote concerning its long-term budget, the Multinational Financial Framework (MFF) for 2028-2034. The committee identified iGaming as a potential source of extra revenue, suggesting a unionwide levy.

It should be noted that the vote was purely tentative, seeking to explore how EU member states feel about the idea.

Commenting on the matter, the EGBA said that such a measure would significantly increase the financial burden on operators. The association projected that this could undermine safer gaming across the EU, since it would benefit illegal operators by making their legal counterparts less competitive.

At the same time, such a levy would reduce tax revenues for EU member states, the EGBA pointed out.

In any case, passing such a measure would require the unanimous approval of all 27 member states.

The Levy Would Be a Gift to the Black Market

Commenting on the matter, Maarten Haijer, EGBA’s secretary general, expressed further concerns about the proposed levy, saying that gambling is currently not harmonized at the EU level. As a result, there is no legal basis to define, administer, or collect such a levy.

Haijer added that a hypothetical levy would stack with other national taxes that operators already pay. Considering that some states already have tax rates exceeding 50% of gross gaming revenue, such a levy would be a gift to the black market, the secretary general asserted.

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 expected to vote on the Committee opinion later this month, after which budget negotiations will kick off.