The European Commission has confirmed it will produce an assessment report on a proposed 1% levy on large online gambling and betting operators, following a plenary debate in the European Parliament initiated by MEP Victor Negrescu.
Negrescu, Vice President of the European Parliament and a member of the Socialists and Democrats (S&D) group, tabled the debate through a formal oral question to the Commission. More than 40 MEPs from multiple political groups signed the initiative, including members of the EPP, The Left, Greens/EFA and Renew Europe.
The proposal would introduce a uniform European contribution applied on top of existing national tax regimes, targeting large platforms that operate cross-border within the EU single market. Negrescu has framed it explicitly as a complement to national frameworks, not a replacement.
What the Levy Would Look Like
Under the proposal, a 1% contribution would be applied to the revenues or turnover of large online gambling and betting operators active in the EU single market. The measure would not replace existing national tax and licensing systems, and member states would retain their own regulatory and fiscal frameworks.
Estimates presented in Parliament put the annual yield at between EUR2bn and EUR4bn during the 2028-2034 Multiannual Financial Framework (MFF). Over the full budget cycle, that range implies between EUR14bn and EUR28bn in total — a sum Negrescu has compared directly to the current total budget of the Erasmus+ programme.
The proposal pairs the levy with a parallel EU directive against illegal online platforms and stronger coordination between European and national enforcement authorities. Revenue would be directed toward education, youth policy, mental health, addiction prevention and minor protection at the EU level.
Commission Response and Political Backing
European Budget Commissioner Piotr Serafin responded positively during the plenary debate, confirming that the Commission would present a formal evaluation report on the measure and indicating that the proposal has found support at the level of the European Council.
The EU Budget Committee is scheduled to hold a dedicated meeting on the proposal on 27 May 2026, also to be chaired by Serafin.
The measure was incorporated into Parliament’s MFF Interim Report, adopted in April 2026. Sandra Gomez Lopez, Co-Negotiator on Own Resources for the EU Budget in the Budget Committee, confirmed the S&D Group’s position that new own resources are a condition for an adequately funded MFF.
“Europe speaks every day about the need for greater investment in education, skills, mental health and child protection. European citizens are asking us more and more often how we finance these priorities in a fair and responsible way. That is why I initiated this concrete European proposal,” said Negrescu.
The Illegal Market Dimension
Negrescu’s case rests on two arguments: the fiscal opportunity and a regulatory failure he described as significant. During the Parliament debate, he cited industry estimates suggesting that approximately 71% of the European online gambling market is currently represented by illegal platforms.
“According to industry estimates, approximately 71% of the European online gambling market is already represented by illegal platforms. We are talking about enormous losses for public budgets, reduced protection for consumers and minors, increased addiction risks and vulnerabilities related to money laundering and organised crime,” Negrescu told MEPs.
The proposed levy is tied to an enforcement mechanism targeting unlicensed operators, positioning the measure as both a revenue tool and a regulatory instrument. This approach connects to a wider debate on cross-border enforcement coordination that seven European gambling regulators discussed in Madrid in November 2025, where the absence of a shared framework for illegal operator crackdowns was identified as a structural gap.
Seven European Gambling Regulators Convene in Madrid to Address Cross-Border Oversight Challenges
Legal and Structural Obstacles
The proposal enters a legally complex environment. Unlike telecommunications or financial services, gambling regulation remains a national competency in the EU. Member states set their own licensing regimes, consumer protection rules and tax structures, producing wide variation across the bloc.
National GGR tax rates currently range from around 5% to close to 40% across EU jurisdictions. Introducing an EU-level levy on top of these structures raises questions about cumulative operator burden in high-tax markets and potential competitive distortion. Any harmonisation measure of this type would also likely require unanimous approval from member states in Council — a significant political hurdle.
This tension is already visible in domestic markets. The UK’s decision to raise online casino remote gaming duty to 40% and sports betting duty to 25% prompted warnings from multiple operators about black market migration — a concern critics argue a supranational contribution could replicate at scale.
Budget Context
The proposal arrives as EU institutions are actively debating new own resources to finance the 2028-2034 MFF. Parliamentary discussions have cited estimates that the European online gambling and betting market generated approximately EUR130bn in gross revenue in 2022, with figures potentially approaching EUR200bn today at a growth rate of roughly 5% annually. Europe’s gross gambling revenue reached EUR123.4bn in 2024, with forecasts pointing to continued growth.
Negrescu has consistently framed the levy as additive: national tax regimes would remain intact, with the EU contribution representing a small, proportionate share applied to an industry that benefits structurally from the single market and cross-border digital infrastructure.
Whether the Commission’s assessment report translates into a formal legislative proposal remains open. The Budget Committee meeting on 27 May will provide the first structured political test of where the cross-group consensus actually stands.
Source: European Parliament / Gandul
