Uniform iGaming Fee in the EU: Brussels Deliberates on a New Framework

Details of the Initiative and the Parties' Arguments

As outlined in a February 13th note prepared by Giulio Coraggio, one of DLA Piper’s lawyers, the proposed initiative involves charging online gambling portals based on their profits. The revenue would fund educational and youth-related programmes through the Union’s resources.

The regional Parliament’s VP has publicly supported the proposition. Victor Negrescu believes this mechanism could reinforce the EU’s financial stability without imposing extra burdens on states’ budgets.

The proponents of the initiative rely on 2 main arguments:

1. The Union needs new funding sources for priority fields such as education and skills development.
2. Tax rates differ significantly across the region, with sector revenues ranging from 5% to nearly 40%. Some argue this variability encourages brands to select countries with lower taxes while maintaining operations across Europe.

Additionally, the note cites data from internal research, referenced at the parliamentary level, estimating the digital gambling market at approximately €130 billion in 2022. Current assessments may be nearing €200 billion. These calculations imply that a 1% EU-wide levy could raise 10s of billions of euros for the Union’s treasury.

Unanimity as the Primary Obstacle: Major Limitations

Despite ongoing debates, implementing this initiative encounters a significant legislative obstacle. Representatives of the European Parliament can discuss the proposal, but they lack the authority to independently introduce a new pan-regional tax.

Approval would require unanimous consent from all 27 EU member states, meaning that 1 or 2 nations, especially those with large iGaming sectors, could block the final decision.

Despite this, industry stakeholders are diligently monitoring the situation. In Brussels, such proposals often gain official support, particularly when they concern budgetary matters and cross-border policies.

Possible Implications for Casino Operators

If the initiative advances to the regulatory stage, the primary inquiry will be how the new tax will interact with existing fiscal burdens.

Several fundamental considerations remain unresolved:

• Will the proposed fee be applied nationwide?
• How will it correlate with corporate levies and current industry charges?
• What fiscal base will be utilised for the sphere’s certified members?
• Will the pan-European duty be levied in addition to local charges, or will measures be implemented to coordinate and prevent double taxation?

An additional concern pertains to the risk of fostering an uneven competitive landscape. Licensed brands may encounter heightened financial obligations, whereas unregulated portals will persist in serving regional audiences without a comparable fiscal burden. The absence of more robust cross-border oversight is likely to exacerbate the disparity between authorised companies and offshore digital platforms.

Market Scale: Key Argument for the Initiative

The European commercial amusement industry ranks among the largest globally and continues to expand. H2 Gambling Capital’s experts projected that the EU's gross gaming revenue reached €123.4 billion in 2024. Of this, €47.9 billion came from the digital vertical, about 40% of the overall market volume.

Given this significant scale, the idea of a unified fee might spark broader discussions about industry supervision in the region. However, certain challenges are raising compliance costs and making it harder for the sphere’s participants to adhere to the rules.

Industry stakeholders have long highlighted fragmented regulations:

• varying tax regimes;
• national gambling licenses;
• inconsistent enforcement measures.

While a pan-European levy may not resolve all the complexities, its discussion indicates a possible move towards more harmonised supervision at the EU level. In this evolving landscape, operators must proactively evaluate financial risks and quickly adapt their management strategies to align with new standards.

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