EU Mulls Gambling Levy That Could Add to EUR $15.49B in Fresh Revenue

The European Union is the latest political actor to turn to the gambling industry as a source of additional funding at a time of geopolitical uncertainty and strained public purses.

The European Commission is now mulling the possibility of taxing the gambling industry, along with several other sectors, with a tax that could rake in as much as EUR 13.3 billion ($15.49 billion) over the next seven years, part of the bloc’s budget.

POLITICO Details How the New Draft Taxes Would Work

The news was first reported by POLITICO, which cited sources and having seen the document. 

The European Commission is similarly working on a tax plan that could see crypto and digital firms taxed along with the gambling industry as part of the 2028-2034 budget framework, and follows a similar move as the measure taken in the United Kingdom last November. 

The tax hikes, though, have already led to second-guessing whether the measure was necessary and whether it has not had an adverse impact. 

The real risk with the law is not the part that affects gambling companies, but specifically the articles that could impact US tech firms, which will likely oppose the measure, and also turn to their government for diplomatic heft and – as has become the norm under the second Trump administration – bullying. 

The extra tax on digital companies, though, could easily bring EUR 5 billion a year, a much-needed boost to the budget.

Skittish European governments may also seek appeasement and oppose a potential plan for tax hikes across the three mentioned sectors, making the original plan less likely to pass.

A 3% tax on online gambling could bring in as much as EUR 1.9 billion extra every year, with a 0.1% tax on crypto transactions bringing another EUR 3 billion to EUR 4 billion every year. 

European Union Would Need to Show Strength to Pass the Proposal

A crypto capital gains tax could also fetch up to EUR 2.4 billion, bolstering the public purse, amid the ongoing energy price shocks and the war in Ukraine, which is demanding funding. 

If passed, the measure would be a significant boost to the European Union’s economy over the next seven years, addressing significant budget concerns, but the blowback from withdrawing investment and less capital around could seriously sap the potential tax revenue stream.