EU discusses flat tax on iGaming

EU discusses flat tax on iGaming

Brussels is considering the possibility of introducing a pan-European levy on online gambling — not a national tax, but direct contributions to the EU budget. The European Union is looking for new sources of funding for education and youth programs — and iGaming with a turnover of €200 billion has come into focus.

The essence of the initiative

• It is proposed to introduce a levy on online operators based on their profits
• The funds will be directed to finance educational programs and youth initiatives in the EU
• Vice-President of the European Parliament Victor Negrescu publicly supported the initiative
• One of the main arguments: tax rates on iGaming in different EU countries range from 5% to nearly 40% — operators choose jurisdictions with low taxes while maintaining their audience across Europe

Market scale

• The gross gaming revenue of the EU in 2024 is projected to be €123.4 billion
• The online segment is €47.9 billion, about 40% of the total volume
• According to estimates provided at the level of the European Parliament, the market has reached €200 billion
• Even an 1% unified levy would bring tens of billions of euros to the EU budget

The main obstacle

• The European Parliament can discuss the initiative but does not have the authority to independently introduce a new tax
• Unanimous approval from all 27 member states is required for adoption
• One or two countries with large iGaming sectors can block the decision

Open questions for operators

• It is not determined whether the levy will complement national taxes or replace them
• Risk of double taxation: licensed operators pay, unlicensed ones do not
• Competitive imbalance will increase: offshore platforms will continue to operate without additional burdens

What this means for the market

• iGaming is viewed as a pan-European source of income, not just an object of national regulation
• The fragmentation of tax regulation in Europe has long irritated both operators and regulators — a unified levy could reduce it

Conclusion

A unified tax on iGaming in the EU is unlikely in the near future — the consensus of 27 countries is too high a bar. Malta and Gibraltar, whose business model is built on tax attractiveness, have veto power and are likely to use it.

But the main paradox of the initiative lies elsewhere: the additional burden will fall on licensed operators, while offshore platforms will continue to operate without it — a measure that declares a fight against the gray market actually makes it more competitive.