EU Commission begins collective gambling tax consideration as 1% levy gains momentum

The European Parliament is now pushing a proposed 1% tax on gambling across the EU into the broader budget discussion, with a target to reach agreement by the end of 2026 and start releasing funds from January 2028. For operators and PSPs, the point is not the tax rate itself; it is that Brussels is treating online gambling and betting as a potential source of dedicated revenue.

1. European Parliament Vice President Victor Negrescu proposed the uniform 1% gambling tax in February, and an EP official told SBC News that it has “gained momentum” in conversations around the bloc’s next long-term budget. The current budget work is being handled under the Cypriot Presidency of the Council of the European Union.
2. The proposal is being folded into plans for the Multiannual Financial Framework for 2028 to 2034, which is meant to generate billions of euros to support the EU’s sustainability. The timeline now discussed is: an official agreement by the end of 2026, legislative acts in 2027, and fresh EU funds from January 2028 onwards.
3. The Socialists and Democrats (S&D) political group in the European Parliament supports the levy. Its backers argue that it could generate billions of euros for EU social funds, and the EP spokesperson said the idea is part of a wider package covering education, youth, mental health, prevention, and the EU’s response to illegal gambling platforms.
4. The latest discussion took place at a Council meeting in Brussels involving the “Friends of Cohesion”, a group of 16 countries. Malta is among them, and the country has a direct stake in the outcome: gambling accounts for roughly one-tenth of annual GDP, which explains why Valletta is treating the issue carefully.
5. After the meeting, Malta PM Robert Abela said fiscal sovereignty should remain with Member States and that the budget “must reflect realistic and nationally-based reforms”. That is the basic political fault line here: one camp wants a common EU-wide contribution from gambling, while another wants tax control left to national governments.

The other argument being used to sell the tax is enforcement. The EP spokesperson cited data from the European Casino Association and YieldSec showing that illegal online gambling operators generated around €80.6bn in 2024, versus €33.6bn for licensed operators, meaning unlicensed activity represented 71% of Europe’s online gambling activity. For PSPs, that kind of framing matters because it is the sort of numbers-first rationale regulators use when they start talking about sector-specific contributions, controls, and enforcement pressure.