The European Gaming and Betting Association (EGBA) has rejected the idea of an EU-wide levy on online gambling, calling the proposal legally unworkable and warning it would benefit illegal operators over licensed ones.
The EGBA’s response follows a suggestion by the European Parliament’s Budget Committee, which included the potential measure in its opinion on the EU’s Multiannual Financial Framework (MFF) for 2028–2034.
No Legal Basis, EGBA Says
The association argues there is no EU-level legal framework for defining, administering, or collecting such a levy. Gambling regulation remains a national competency across member states, and no harmonised EU framework exists to support a cross-border tax mechanism of this kind.
EGBA Secretary General Maarten Haijer framed the issue in direct terms:
“Gambling is currently not harmonised at EU level and there is no legal basis to define, administer or collect such a levy. Setting aside these legal obstacles, adding yet another levy on top of existing national taxes – in a sector where licensed operators in some Member States are already taxed at rates exceeding 50 per cent of gross gaming revenue – would only have one winner: illegal operators.”
The warning reflects a pattern regulators and operators have flagged repeatedly across European markets. Operators in the UK raised similar concerns following the government’s confirmation of major gambling tax increases, projecting that higher costs for licensed businesses push players toward unregulated alternatives.
Black Market Risk
Haijer expanded on the competitive distortion an EU levy would create:
“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.”
The argument is that additional taxation narrows the price and product gap between licensed and unlicensed operators, making regulated sites less competitive without any corresponding improvement in player protection. Germany’s betting group raised equivalent concerns about black market growth when higher taxes began taking effect in that market.
Status of the Proposal
The EGBA was clear that the Budget Committee’s opinion does not constitute a concrete legislative proposal. It is described as a highly tentative, conditional call on member states to explore the idea — not a decision or directive. Any new direct revenue stream for the EU budget would require unanimous agreement among all 27 member states through the EU Council, a threshold that sets a high bar for any such measure advancing.
The European Parliament is expected to vote on the Budget Committee’s opinion at its plenary session in the coming week. Formal MFF negotiations are then due to begin, with a conclusion expected by the end of 2026.
Fraud Action Plan Submission
Separately, the EGBA has submitted evidence to the European Commission’s call for evidence on the upcoming EU Action Plan on Fighting Online Fraud. The association used its submission to push for coordinated EU action against fraudulent gambling sites and apps that exploit the branding and reputation of legitimate operators.
The two interventions — opposing new tax burdens while calling for enforcement against illegal operators — reflect the EGBA’s consistent position that the licensed sector’s viability depends on a level playing field with the unlicensed market, not additional costs layered on top of existing national obligations. The UKGC’s final report on the UK’s illegal online gambling market outlined similar structural risks when licensed operators face cost pressures that unlicensed competitors do not.
Source: European Gaming and Betting Association (EGBA)
