😱 The European Commission reviews proposal for a common tax on the gambling sector

😱 The European Commission reviews proposal for a common tax on the gambling sector

The proposal involves an additional 1% tax that would apply across all member states. The issue was first raised in February this year and forms part of a broader financial framework aimed at ensuring the stability of the European Union during the 2028-2034 budget period, currently being developed by the Council of the European Union.

💬 The tax proposal has already received support from the Progressive Alliance of Socialists and Democrats (S&D) in the European Parliament. Supporters argue that the measure could generate billions of euros for “social funds.” Part of the revenue could also be allocated to combating unlicensed operators, whose activity could expand as a result of increased tax pressure on the regulated market.

💬 Supporters of the initiative believe that an official agreement should be reached before the end of the current year, followed by adoption of the relevant legislative acts during 2027, with revenue collection beginning in January 2028.

💬 Development of the framework agreement was discussed during the latest Council meeting in Brussels b
y a group of 16 countries, including Malta🇲🇹. Gambling activities account for approximately one-tenth of Malta’s annual GDP.

💬 For this reason, Malta’s Prime Minister Robert Abela emphasized that fiscal sovereignty should remain under the authority of member states, stating that the budget “must reflect realistic reforms aligned with national interests.”

💬 Context: while regulatory requirements for the licensed gambling sector continue to increase, data from the European Casino Association indicates that unlicensed online operators generated approximately 80.6 billion euros in 2024, accounting for 71% of all online gambling activity in the region.

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