European Union considers 3% online gambling tax amid member state opposition

The European Commission is considering a 3% tax on the net turnover of online gambling providers to create a new revenue stream for the EU budget. Estimates suggest this could generate approximately €1.9 billion annually, totaling more than €13 billion over a full budget cycle.

The proposal faces significant opposition from member states with large gaming sectors. Malta is leading the resistance, with Prime Minister Robert Abela stating that the country will not accept EU taxes designed to sustain the bloc's expenses. Malta's gambling industry accounts for roughly 12% of its GDP, and officials argue that higher taxes could drive companies out of the country and strengthen illegal operators.

Malta is reportedly supported by Italy, Portugal, and Spain. In Portugal, concerns exist regarding the potential impact on revenues currently allocated to social programs like Santa Casa da Misericórdia de Lisboa. The debate highlights a divide between Western European nations and Southern European countries where online gaming is a major economic factor. Supporters of the measure, including figures like former footballer Peter Shilton, advocate for the tax as a means to curb gambling addiction by reducing advertising revenue.