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A new idea is gaining airtime in Brussels that could put an EU-wide levy on the online betting and gaming sector, not as a national duty, but as a direct revenue stream for the European Union.
In a note published on February 13, DLA Piper’s Giulio Coraggio said the proposal under discussion would tax the profits of online betting and gaming operators, with the proceeds intended to fund education and youth policies through the EU’s “own resources” system.
The proposal is being sold on two solid fronts
The proposal has been publicly supported by Victor Negrescu, a Vice-President of the European Parliament, who described it as a way to strengthen EU finances without further leaning on national budgets.
Supporters are pushing it for two reasons. They say the EU needs new funding to support priorities such as education and skills. They also point to the uneven tax picture across Europe: profit taxes can run from about 5% in some countries to nearly 40% in others, which critics argue nudges operators toward lower-tax bases while still selling across borders.
To underline scale, the same briefing cites internal research referenced at the parliamentary level estimating the online gambling and betting sector at roughly €130bn in 2022 revenue, with “current volumes” potentially nearing €200bn. It suggests even a 1% levy could raise “tens of billions” for the EU budget.
The legal reality: one country can stop it
There’s a hard gate on any EU tax plan. The European Parliament can debate the idea, but it can’t create a new EU tax on its own. A key levy like this would need unanimous backing from all 27 member states, meaning a single country can block it, especially one with a large iGaming footprint.
But the industry closely watches these debates. A “trial balloon” in Brussels can quickly become a policy track once budgets and cross-border priorities get involved.
What it could mean for operators
If it ever reached the rulebook, the biggest question would be whether the EU levy stacks on top of national taxes or is coordinated to avoid double taxation. Some unresolved issues include: the taxable base, whether it could be deductible at the national level, and how it would interact with corporate tax and existing sector levies.
There’s also the familiar fear that compliant operators have. They might be paying more while unlicensed sites keep selling into Europe. If only licensed firms carry the cost, the result could be a wider gap between regulated brands and offshore rivals unless enforcement improves across borders.
For context, Europe’s gambling market is already huge and continues to grow. H2 Gambling Capital put Europe’s GGR at €123.4bn in 2024, with online GGR at €47.9bn and online nearing 40% market share.
A Common Tax, a Common Framework?
At the same time, many stakeholders within the iGaming industry have long called for greater regulatory harmonisation across Europe. Today, operators navigate a fragmented landscape of national licences, varying tax rates and inconsistent enforcement standards, increasing both compliance costs and legal complexity. An EU-wide levy would not solve all of these challenges, but if designed carefully and in coordination with member states, it could represent a first step toward a more unified European framework. For a closer look at how online gambling regulation currently differs across countries, read the full country-by-country overview of European online casinos.
In a market already generating more than €123bn in annual GGR, with online approaching 40% market share, the debate over a common levy may ultimately evolve into a broader conversation about the future structure of European iGaming regulation.
