EU Online Gambling Tax: Malta Vetoes €1.9Bn Levy Proposal
The European Parliament has pushed for an EU-wide levy on online gambling to help pay for the bloc's next long-term budget, a plan the European Commission estimates could raise about €1.9 billion a year.
The proposal, set out in Parliament's interim budget report adopted on April 28, 2026, now faces resistance from Malta, the EU's largest online gambling base, which has threatened to block any new EU-level tax.
Backers want a levy to help fund causes including education and addiction prevention, while operators and several governments warn the idea is unworkable and would only push players towards illegal sites.
What the European Parliament Voted For
Parliament adopted its position on the 2028-2034 Multiannual Financial Framework by 370 votes to 201, with 84 abstentions, proposing a budget of €2.01 trillion in current prices.
MEPs reaffirmed their support for new "own resources" to cut reliance on national contributions and repay NextGenerationEU debt, and said around €60 billion a year in new revenue is needed.
Among the alternatives they want explored are a digital services levy, an online gambling levy, an extension of the carbon border adjustment mechanism and a levy on crypto-asset capital gains.
How the €1.9 Billion Estimate Breaks Down
At Parliament's request, the Commission modelled the option. In a working document circulated to member states on May 28, 2026 (Fiche No. 48), the Commission services estimated that a 3% levy on the net turnover of the online gambling sector could generate an average of €1.9 billion a year over 2028 to 2034.
The document shows the burden would fall unevenly. Spain would be the largest contributor at an estimated €414 million a year, followed by Poland on €231.7 million, Germany on €208.7 million and Malta on €165.1 million.
| Member state | Estimated levy (€m per year) |
|---|---|
| Spain | 414.0 |
| Poland | 231.7 |
| Germany | 208.7 |
| Malta | 165.1 |
| Italy | 143.3 |
| Greece | 118.0 |
| France | 92.3 |
| Ireland | 58.5 |
| EU27 total | 1,863.1 |
Why Malta Is Threatening a Veto
Malta's figure stands out for a country of around 550,000 people: gambling accounts for roughly 12% of its economy, according to the Malta Gaming Authority. Prime Minister Robert Abela has drawn a red line.
In a ministerial statement to Malta's Parliament on June 22, 2026, he said Malta would not accept any EU-level tax designed to fund the bloc's central budget and would use its veto if needed. Any new own resource must be agreed unanimously by all 27 member states in the Council, so a single objection can sink it.
Where the Idea Came From
The idea originated with the Socialists and Democrats group. Its proposal, promoted by European Parliament vice-president Victor Negrescu, envisages a levy of around 1% on the revenue or turnover of large online gambling and betting operators, which the group says could raise €2 billion to €4 billion a year, or €14 billion to €28 billion across the budget cycle.
The S&D says the money would fund education, youth, mental health and addiction prevention, and would complement rather than replace national gambling taxes.
Operators Push Back
Operators have rejected the plan. The European Gaming and Betting Association called it "fundamentally unworkable" after Parliament's budget committee vote on April 15, 2026. Secretary general Maarten Haijer said gambling is not harmonised at EU level and there is no legal basis to define, administer or collect such a levy.
He warned that adding a charge on top of national taxes that already exceed 50% of gross gaming revenue in some countries would have "only one winner: illegal operators".
The Legal and Market Hurdles
The Commission's own analysis flags the obstacles. With no harmonised EU definition of online gambling, a levy would first require sectoral tax legislation under Article 113 or 115 of the EU treaty, both needing unanimity, before an own resource could be set under Article 311.
The Commission also cautioned that passing the cost to players could push them towards unlicensed sites, citing estimates that illegal operators already capture between 28% and 71% of the market.
Online gambling has grown from 26% of the industry's gross gaming revenue in 2019 to 39% in 2024.
What Happens Next
Ireland, which holds the rotating Council presidency, is expected to steer negotiations the Commission wants concluded by the end of 2026.
With Malta signalling a veto and other member states weighing their own bills, the gambling levy is one of several revenue lines still to be settled.
The outcome will matter well beyond Valletta, at a time when EU states such as Cyprus are drawing up new gambling rules of their own.
