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EU iGaming tax is emerging as a serious policy proposal in Brussels, with the potential to reshape the taxation framework of the online gambling sector across the European Union.
The idea, supported at European Parliament level, is to introduce an EU iGaming tax on the profits of online betting and gaming operators to generate new EU budget revenues—particularly to fund education and youth policies. Although any such measure would require unanimous approval by Member States, the debate signals a possible shift toward fiscal harmonisation in the iGaming sector, with implications for operators across Europe, including Italian licensed operators.
Why the EU iGaming Tax Is Being Discussed Now
The proposal has been publicly supported by Victor Negrescu, Vice-President of the European Parliament, who framed the EU iGaming tax as a sustainable alternative to strengthen EU “own resources” without directly burdening national budgets.
Two main arguments underpin the proposal:
First, the EU budget is considered insufficient to address current and future policy priorities, particularly in education and skills development.
Second, national gambling tax regimes vary significantly, creating what has been described as competitive distortions within the internal market.
According to public statements, taxation on online gambling profits can range from around 5% in certain jurisdictions to nearly 40% in others. This divergence allegedly incentivizes operators to establish themselves in lower-tax Member States while offering services across the EU, thereby benefiting from regulatory fragmentation.
In support of the initiative, internal research cited at parliamentary level estimates that the online gambling and betting sector generated approximately €130 billion in revenue in 2022, with current volumes potentially approaching €200 billion and annual growth around 5%. Even a 1% EU iGaming tax, it is argued, could generate tens of billions of euros for the EU budget.
From a political perspective, the argument is compelling: a growing digital sector, cross-border by nature, contributing directly to EU-level public goods.
From a legal and economic perspective, however, the picture is more complex.
EU iGaming Tax and the Question of Fiscal Harmonisation
The introduction of an EU iGaming tax would represent a significant step toward fiscal harmonisation in a sector traditionally regulated and taxed at national level.
Unlike VAT, which is partially harmonised, gambling taxation remains firmly within Member State competence. An EU-level levy would therefore alter the current balance between national sovereignty and EU fiscal integration.
Importantly, the European Parliament does not have autonomous taxation powers. Any EU iGaming tax would require unanimity among all 27 Member States. This institutional constraint is not marginal. It means that countries with strong economic exposure to the iGaming industry would have the ability to block the proposal.
Nonetheless, the political debate itself is significant. It suggests that online gambling is increasingly viewed not only as a regulated activity but also as a potential structural fiscal resource at EU level.
Market Impact Across the European Union
If introduced, an EU iGaming tax would likely sit on top of existing national taxes unless specific coordination mechanisms were established.
This raises several structural questions:
- Would the EU levy be deductible at national level?
- Would it apply to gross revenue, profits, or another taxable base?
- How would it interact with corporate taxation and existing sector-specific levies?
- Would enforcement mechanisms be centralised or delegated to national authorities?
Even a modest additional percentage can materially affect margins in a high-volume, competitive market. For operators active in multiple jurisdictions, the cumulative tax burden could become a strategic variable influencing:
- Corporate structuring;
- Market entry decisions;
- Pricing models;
- Investment strategies.
The debate therefore goes beyond a simple percentage point. It touches on the long-term sustainability of business models in the European iGaming sector.
Enforcement and the Risk of Competitive Imbalance
A recurring concern in any new fiscal initiative is enforcement against unlicensed operators.
The online gambling market is already characterised by the presence of offshore platforms targeting EU consumers without national licences. If an EU iGaming tax were imposed exclusively on compliant, licensed operators, it could unintentionally exacerbate competitive imbalances.
A credible EU-level fiscal initiative would need to be accompanied by strengthened cross-border enforcement mechanisms and coordinated action against illegal operators. Otherwise, compliant actors would bear additional costs while the unregulated segment remains unaffected.
This is not only a legal issue. It is a market integrity issue.
The Italian Perspective Within a Broader EU Context
While the EU iGaming tax debate is European in scope, its impact would inevitably be felt at national level.
In Italy, licensed operators already operate within a structured and demanding regulatory and fiscal framework, including gaming taxes on GGR, concession fees, corporate taxation for local companies, and extensive compliance obligations. An additional EU levy could therefore increase the overall effective tax burden unless carefully designed.
At the same time, Italian operators—many of which are part of international groups—would also be affected by the broader European competitive landscape. A harmonised EU iGaming tax could reduce certain cross-border asymmetries but might also compress margins across the sector.
In this sense, Italy is part of a larger European equation rather than the sole focus of the issue.
A Political Signal With Long-Term Implications
The proposal also includes a broader policy ambition: allocating a significant portion of the future EU multiannual financial framework to education and skills.
Framing the EU iGaming tax as a funding source for socially valuable objectives strengthens its political appeal. However, it also raises a fundamental policy question: should the online gambling sector become a structural pillar of EU financing?
For operators, investors, and regulators, the message is clear. The fiscal debate surrounding online gambling is evolving from national fragmentation toward potential European coordination.
Whether or not the EU iGaming tax materialises in the short term, the direction of travel is evident. Regulatory and fiscal risk in the iGaming sector is increasingly shaped in Brussels as much as in national capitals.
In a sector where margins, compliance, and political perception already intersect, that shift deserves careful attention.
You can read about the different gambling tax regimes in almost 50 jurisdictions in the DLA Piper Gambling Laws of the World guide and more about gaming law issues HERE.