EU Considers New Online Gambling Tax Proposal

The European Commission is considering the introduction of a new levy on online gambling as part of a wider strategy to secure additional funding for the European Union’s next long-term budget cycle.

According to a document seen by POLITICO and circulated among national governments and members of the European Parliament, the proposed gambling tax could raise around €1.9 billion per year. The measure forms part of a broader package of potential revenue streams expected to generate up to €13.3 billion annually between 2028 and 2034.

The proposal arrives as Brussels continues searching for alternative funding sources following prolonged disagreements surrounding the Commission’s initial budget plans. Alongside gambling, the European Commission is also examining possible taxes on cryptocurrency transactions and large digital companies as part of efforts to support the bloc’s future financial framework.

Members of the European Parliament have reportedly revived discussions around the plan, arguing that sectors such as online gambling, crypto and major technology firms should contribute more directly to EU financing.

Several of the proposed levies are already expected to face political resistance. A suggested 3% tax on major digital companies could reportedly generate around €5 billion annually, although concerns remain that the measure would disproportionately affect U.S.-based firms and potentially trigger retaliatory action from Washington. The Commission based its projections on similar digital taxation models already implemented in countries including France, Spain and Italy.

The proposed gambling levy would apply a 3% tax on net turnover, though opposition is anticipated from Malta, where the online gambling industry remains a major contributor to the economy.

Crypto-related taxation is also under consideration. A proposed 0.1% levy on cryptocurrency transactions is estimated to generate between €3 billion and €4 billion annually, while an additional capital gains tax on crypto assets could contribute a further €1 billion to €2.4 billion each year.

The proposals are expected to intensify already difficult negotiations over the EU’s future budget plans. Cyprus, which currently holds the Council presidency, is preparing updated figures and allocation proposals ahead of discussions expected around June 10.

Any new EU “own resources” require unanimous approval from all 27 member states, making the path toward implementation highly uncertain. The broader funding package is intended to support nearly €2 trillion in EU spending between 2028 and 2034, including repayments linked to the bloc’s post-pandemic recovery borrowing programme.