EU iGaming Tax Could Open the Door to Greater Harmonisation

Belgium.- 21 August 2026 | www.zonadeazar.com The European Union is considering whether online gambling could become a new source of revenue for its next 2028-2034 Multiannual Financial Framework, a fiscal debate that could have much broader regulatory consequences for the sector.

Although no EU-wide iGaming tax has been approved, any move towards such a contribution would require all 27 Member States to agree on common definitions covering the activities included and the basis on which the levy would be calculated.

Those harmonised definitions do not currently exist.

A Market Fragmented Across 27 Jurisdictions

Online gambling remains primarily regulated at national level across the European Union.

Its 27 Member States operate different approaches to:

• Licensing.
• Taxation.
• Product definitions.
• Consumer protection.
• Compliance.
• Enforcement.
• Advertising.

This fragmented structure increasingly contrasts with the digital and cross-border nature of the industry.

A New Source of EU Budget Revenue

The debate comes as the European Union prepares its next seven-year budget for 2028-2034.

One of the options being examined is a new own-resource mechanism linked to online gambling.

Potential models being considered could use:

• Gross Gaming Revenue (GGR).
• Gambling turnover.
• Player stakes.
• Other wagering-related calculations.

Authorities would also need to decide which gambling activities would fall within scope.

The measure could cover online gambling generally or only selected verticals such as sports betting, casino, poker or bingo.

The Challenge of a Common Tax Base

One of the principal obstacles is that the European Union currently has no harmonised legal definition of online gambling.

There is not even a binding EU-wide definition of Gross Gaming Revenue (GGR).

Before a common contribution could be applied, Member States would need to agree on what activity is being taxed and how the underlying tax base should be calculated.

That requirement could introduce common fiscal concepts into an industry that has historically remained under national regulation.

Tax Could Become a Route to Harmonisation

Claire Pinson-Bessonnet, European gambling legal specialist and Founding Partner of CPB Avocats, argues that the significance of the debate extends beyond the potential revenue raised.

A common tax would require a degree of harmonisation before it could be introduced.

Member States would first need to agree on definitions, activities and a common tax methodology before determining how much each market should contribute.

This would not automatically create a unified European gambling regulatory regime, but it could establish an important precedent.

Two Potential Legal Routes

The European Commission has identified two possible treaty routes.

Article 113 of the Treaty on the Functioning of the European Union allows for harmonisation of certain forms of indirect taxation where necessary for the internal market.

Article 115 allows directives approximating national laws and administrative provisions that directly affect the establishment or functioning of the internal market.

The route selected could influence how extensively Member States would be required to align their systems.

Unanimity at Two Stages

Any new EU gambling resource would also face a substantial political hurdle.

Member States could effectively be required to reach unanimity twice.

First, they would have to approve the common rules establishing harmonised definitions and a tax base.

They would then need to unanimously approve gambling as an EU own resource and the rate applied to that common base.

The final decision would also require approval under Member States’ respective constitutional procedures.

Risk of Strengthening the Black Market

Another concern is the impact of additional taxation on licensed operators.

European regulated markets already compete with offshore platforms that do not face the same licensing, taxation and compliance costs.

Another fiscal layer could therefore widen the cost difference between regulated and illegal businesses.

For that reason, an EU-level tax initiative could also increase pressure for stronger cross-border cooperation involving:

• Identification of illegal operators.
• Payments.
• Advertising.
• Enforcement.
• Blocking unauthorised platforms.

Malta and National Interests

The debate also creates potentially conflicting interests among Member States.

Countries with established gambling industries and significant national licensing systems could be cautious about harmonisation where the initial objective is generating additional EU revenue.

Taxation may therefore reopen a debate that has repeatedly faced resistance from governments determined to retain national control over gambling policy.

Next Steps or Impact

An EU-wide iGaming tax remains an option rather than an approved policy.

Its significance for the industry, however, extends well beyond taxation.

To introduce it, Member States would have to agree common concepts around gambling activities and taxable bases for the first time.

That process could represent an initial step towards greater European coordination in a sector that continues to operate through 27 different national frameworks.

A debate originally focused on funding the EU’s next budget could therefore revive one of European iGaming’s most important questions: how sustainable is a highly digital and cross-border industry without a broader common framework?

Editó: @fonta