EU Considers Gambling Tax That Could Generate €15.49 billion in New Revenue

(AsiaGameHub) –   The European Union is among the latest political entities considering the gambling sector as a potential source of additional revenue, particularly during a period marked by geopolitical instability and financial pressures on public funds.

The European Commission is currently exploring the possibility of imposing taxes on the gambling industry, alongside several other sectors. This proposed tax could generate up to EUR 13.3 billion ($15.49 billion) over the next seven years, contributing to the bloc’s budget.

POLITICO Details How the New Draft Taxes Would Work

This development was initially reported by POLITICO, which cited sources and indicated it had reviewed the relevant document.

The European Commission is also developing a tax strategy that could involve taxing crypto and digital firms, in addition to the gambling industry, as part of the 2028-2034 budget framework. This initiative mirrors a similar measure implemented in the United Kingdom last November.

However, the proposed tax increases have already prompted discussions about their necessity and potential negative consequences.

The primary concern with the proposed legislation lies not with the provisions affecting gambling companies, but specifically with the articles that could impact US tech firms. These companies are expected to oppose the measure and may leverage their government for diplomatic support and—as has become characteristic under the second Trump administration—for coercive tactics.

Nevertheless, the additional tax on digital companies could potentially yield EUR 5 billion annually, providing a much-needed injection of funds for the budget.

Hesitant European governments might also opt for appeasement and resist a comprehensive plan for tax hikes across the three mentioned sectors, which could diminish the likelihood of the original proposal being adopted.

A 3% tax on online gambling could generate as much as EUR 1.9 billion in additional revenue each year, while a 0.1% tax on crypto transactions could contribute another EUR 3 billion to EUR 4 billion annually.

European Union Would Need to Show Strength to Pass the Proposal

Furthermore, a crypto capital gains tax could potentially raise up to EUR 2.4 billion, augmenting public finances amidst ongoing energy price volatility and the financial demands of the war in Ukraine.

If enacted, this measure would represent a significant boost to the European Union’s economy over the next seven years, addressing considerable budget challenges. However, the potential for withdrawn investment and reduced capital flow could substantially diminish the projected tax revenue stream.