CasinoNoDeposits Editorial
Common gambling levy excluded from initial draft
The Irish Presidency has omitted a proposed common tax on online gambling from the first draft of the European Union’s Budget 2028-2034. The decision marks a significant shift from earlier proposals advanced within the European Parliament, though the draft retains other common funding mechanisms, including a levy on tobacco consumption and the Corporate Resource for Europe (CORE).
Ireland assumed the role of chief negotiator for the 2028-2034 budget cycle in July 2026. The resulting draft plan sets a proposed spending ceiling of €1.62 trillion in constant 2025 prices, which is equivalent to approximately €1.85 trillion in current prices. The total minimum budget plan value is cited at €2 trillion. These figures are subject to final agreement and do not represent guaranteed contributions from the bloc’s 27 member states.
Origin of the gambling tax proposal
The common tax on online gambling was originally proposed by the Socialists and Democrats (S&D) group in the European Parliament. The initiative was headed up by Romanian Member of European Parliament (MEP) Victor Negrescu, who serves as a Vice-President of the European Parliament and is a member of the S&D group.
Negrescu proposed a unified tax rate of 1% on licensed gambling revenues across the EU. The S&D group projected that this levy would generate between €2 billion and €4 billion annually. Over the full duration of the budget cycle, the projected total revenue from this specific tax was estimated at approximately €14 billion. Funds raised through the proposed levy were intended to support education, youth programs, mental health services, addiction prevention, and the protection of minors.
Industry and Malta oppose the levy
The European Gaming and Betting Association (EGBA) immediately criticized the proposed tax upon its introduction. The government of Malta also joined the criticism, arguing that the levy would interfere with the national sovereignty of member states to govern their individual gambling markets. Gambling remains a key economic contributor for Malta and other EU member states.
Malta Prime Minister Robert Abela expressed support for the broader Budget 2028 initiatives, including general common tax policies, but specifically opposed the inclusion of online gambling in the common tax framework. This alignment with industry concerns appears to have influenced the Irish Presidency’s final decision in the first draft.
Other common taxes remain in the draft
While the gambling levy was dropped, the draft budget maintains other proposals for new EU revenue sources. The document specifies the review of selective taxes on emissions trading, electronic waste, tobacco consumption, and carbon offsetting. For tobacco, the draft proposes that each member state contribute 15% of an amount calculated from tobacco products released for consumption and minimum duty rates.
The draft also retains the CORE proposal, which applies a flat-rate annual lump-sum contribution from EU businesses generating over €100 million in revenues. CORE is intended to help reduce debt accumulated during the COVID-19 era. First projections indicate that these common tax plans, excluding the gambling levy, could raise up to €55 billion annually.
European Commission President Ursula von der Leyen and European Council President António Costa support the development of common EU taxes. Both leaders argue that economic self-dependence must form a central part of the next EU budget cycle. The European Parliament continues to support new revenue sources and has identified an online gambling levy as a potential funding measure, suggesting the issue may remain a point of contention during negotiations.
The current negotiating document remains non-binding. Adoption of the final Multiannual Financial Framework (MFF) requires unanimous agreement from the Council and the consent of the European Parliament.
Why It Matters
Excluding the 1% levy from the initial draft removes a significant potential source of EU funding that the S&D group projected would raise €14 billion over the cycle. For operators, this avoids the immediate introduction of a unified EU tax on licensed revenues, though the issue remains a potential funding measure for the European Parliament. The omission reflects Malta’s sovereign concerns and industry opposition, setting the stage for continued negotiation over the final budget structure.
Looking for somewhere to play? Browse our current no deposit bonus listings, with verified codes and the full wagering terms for each offer.
