EGBA Responds to EU-Wide Gambling Tax Proposition
The European Gaming and Betting Association (EGBA) has publicly rejected a proposal for a harmonised EU gambling tax, warning it could exacerbate black market activity. The response follows remarks by Victor Negrescu, VP of the European Parliament, advocating a unified levy on online gambling operators across the bloc.
Negrescu told lawmakers that the online gambling sector generates tens of billions of euros annually, while a significant share of profits avoids what he considers fair taxation. He proposed a European levy applied alongside existing national turnover taxes, coupled with stronger action against unlicensed platforms.
Related: UK-Based Gambling Companies See Share Values Plummet amid Possible Tax IncreasesHe estimated that such a measure could raise between 2 billion and 4 billion euros annually, potentially reaching nearly 28 billion euros over the long-term EU budget cycle. According to his remarks, the additional funds could support education, skills development, prevention programs, addiction treatment and mental health initiatives.
The EGBA, which represents major European gambling operators, said the proposal lacks a workable legal foundation. The group argued that gambling regulation remains a national competence and that no EU-wide mechanism exists to collect such a levy.
Maarten Haijer, Secretary General of the association, described the plan as fundamentally unworkable and warned that adding another layer of taxation would place further strain on licensed operators. He stated that companies already face heavy national taxes and strict regulations across multiple jurisdictions.
Haijer argued that illegal operators, which pay no tax, would benefit if licensed firms faced additional fiscal burdens. He said unlicensed platforms can offer more attractive products and pricing because they do not bear compliance costs or consumer protection obligations.
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EU Tax Would Fuel Black Market Growth
The association maintained that imposing an EU-level tax on top of national regimes would likely expand the black market and weaken consumer safeguards. It also warned that member states could ultimately collect less revenue if players migrate to offshore sites.
Recent developments in certain member states have been cited as evidence of this dynamic. In the Netherlands, higher gambling tax rates introduced last year were intended to increase treasury income, yet subsequent figures indicated lower gross gaming revenues and reduced tax intake.
Industry observers have also pointed to Germany, where tax policies applied to player wagers have coincided with low channelization rates compared to other European markets. Critics say such trends illustrate the conundrum regulators face when attempting to balance revenue generation with maintaining a competitive, regulated market.
Negrescu is a member of Romania's Social Democratic Party, part of the country's current governing coalition, which has pursued fiscal consolidation measures, including higher gambling taxes. His proposal at the EU level reflects a similar policy impetus, though it has not yet been formally tabled as draft legislation.
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