Debates are gathering momentum in Brussels regarding a possible pan-European levy on the internet sportsbook and casino sectors. It would not be a national fee, but a direct source of revenues for the EU budget if applied.
Initiative and the Arguments of the Parties
According to a February 13th note prepared by Giulio Coraggio, one of DLA Piper's lawyers, the introduced idea would charge iGaming platforms based on their earnings. The funds would be used to finance educational programs and youth-related projects through the Union’s resources.
The regional Parliament’s VP has officially backed up the initiative. In Victor Negrescu's opinion, such a mechanism could strengthen the EU’s fiscal stability without placing additional burdens on states' treasuries.
The proposal’s promoters rely on 2 key arguments:
- The Union requires new sources of funding for priority areas, including education and skills development.
- Taxes remain highly variable across the region: sector revenues range between 5% and almost 40%. Some believe that this inconsistency encourages companies to choose countries with lower rates while continuing to operate throughout Europe.
The note also includes data from an internal study cited at the parliamentary scale: the iGaming market was estimated at around €130 billion in 2022. Meanwhile, current figures are possibly approaching €200 billion. Calculations suggest that even a 1% EU-wide tax could generate 10s of billions of euros for the Union’s coffers.
Unanimity as the Main Barrier: Key Restrictions
Despite active discussion, implementing such an initiative faces a serious legislative hurdle. The European Parliament’s members can debate, but they do not have the power to introduce a new pan-regional levy independently.
Approving the mechanism would require the unanimous support of all 27 EU states. This factor means that even 1 or 2 nations, particularly those with large-scale iGaming sectors, could block the final approval.
Nevertheless, the industry’s players are closely monitoring developments. In Brussels, such initiatives often receive official endorsement, especially if they address budgetary matters and cross-border policies.
Potential Consequences for Casino Owners
If the proposal reaches the regulatory stage, the key question will be how the new fee will interact with existing financial obligations.
Several fundamental aspects remain open:
- Will the offered levy be deducted nationwide?
- How will it relate to corporate taxes and existing industry charges?
- What fiscal base will be utilised for the sector’s licensed participants?
- Will the pan-European duty be applied on top of local ones? Or will coordination be provided to eliminate double taxation?
An additional concern is the risk of uneven competition. Certified firms may face an increased financial burden, while illegal platforms will continue to serve regional audiences without comparable obligations. The lack of stronger cross-border oversight will widen the gap between accredited studios and offshore web resources.
Market Scale as an Argument for the Initiative
The European commercial entertainment sector is among the largest in the world and continues growing. H2 Gambling Capital's analysts estimated that gross gaming revenue in the EU reached €123.4 billion in 2024. From this amount, the online segment accounted for €47.9 billion, approximately 40% of the total market volume.
Given this impressive scope, the discussion of a unified levy could escalate into a more meaningful dialogue about the prospects of industry oversight in the region. Nevertheless, some challenges continue to increase compliance costs and make it more difficult for representatives to remain in adherence to the rules.
The sphere’s participants have long pointed out fragmented-style regulations:
- different tax regimes;
- national gambling licences;
- uneven enforcement measures.
Even if a pan-European tax does not eliminate all the complexities, the very fact that it is being discussed signals a possible shift toward more harmonised oversight at the EU level. Against this backdrop of changes, operators need to be the first to assess fiscal risks and promptly adjust their management models to meet new requirements.
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