More than 20 members of the European Parliament have backed a proposal to introduce a coordinated EU-wide tax on online gambling operators, with revenues earmarked for education, addiction treatment, and consumer protection across the bloc.
The amendment, put forward by Victor Negrescu, vice-president of the European Parliament and member of the Socialists and Democrats group, has been submitted as part of the Parliament’s report on the future Multiannual Financial Framework. Notably, it carries the support of the Parliament’s intergroup for education. It is also one of the more ambitious attempts yet to bring some coherence to how the EU handles an industry that has long operated across borders while being taxed and regulated very differently depending on the country.
A Case Against the Status Quo
Negrescu’s argument is based on a fairly simple observation. Online gambling is a digital, cross-border industry that moves freely across the EU single market, drawing on shared infrastructure and reaching consumers in every member state. Yet the rules governing it vary dramatically from one country to the next, with operators able to base themselves in lower-tax jurisdictions and effectively choose the regulatory environment that suits them best.
The consequences of that fragmentation, he argues, go well beyond administrative inconsistency. Uneven taxation is creating unfair competition between operators, opening the door to tax evasion, and pushing more gambling activity into the hands of unregulated black market platforms. Profits are frequently structured in ways that see revenue leave the EU entirely through tax optimisation arrangements, meaning the bloc as a whole sees little return from an industry that depends heavily on its single market to function.
What the Proposal Actually Involves
The levy would apply at the EU level, replacing the current patchwork of national approaches with a single coordinated framework. Negrescu estimates it could raise between €2 billion and €4 billion annually, adding up to as much as €28 billion over the full term of the EU’s long-term budget.
That money would be directed towards education and skills training, harm prevention, addiction treatment and mental health support. The amendment also calls for 20% of the future long-term European budget to be spent on education more broadly, with the gambling levy positioned as a way to help meet that target without placing any additional pressure on national budgets or taxing citizens directly. Consumer protection measures form part of the package too, with the proposal including steps to tackle illegal platforms and strengthen safeguards for vulnerable users, including minors.
A Familiar Scenario
Gambling operators across the world are already facing rising tax burdens at a national level. The industry has been vocal in warning that pushing up costs in regulated markets tends to drive players towards illegal alternatives rather than reducing gambling activity. As it stands, the UK is navigating exactly that debate right now, with significant tax increases on the horizon and the Betting and Gaming Council warning of serious consequences for the regulated sector.
With more than 20 co-signatories already on board and institutional backing in place, the proposal has enough support to demand a serious hearing. Whether it translates into policy is another question entirely, but the conversation it is starting is one the EU has been putting off for a long time.
