The European Gaming and Betting Association (EGBA) has strongly criticized a proposal from the European Parliament Budget Committee to introduce a European-wide levy on online gambling, calling the measure “fundamentally unworkable” within the current legal framework.

The initiative, presented as a potential funding source for the European Union’s long-term budget, comes as lawmakers push for a 10% increase in spending to support key priorities such as defense, digital transformation, and economic resilience. However, EGBA argues that targeting the iGaming sector overlooks the fragmented regulatory landscape across the bloc.

According to EGBA Secretary General Maarten Haijer, gambling legislation remains under the control of individual member states, meaning there is no harmonized legal basis to implement or collect a centralized EU levy. He emphasized that licensed operators already face heavy taxation in many jurisdictions, in some cases exceeding 50% of gross gaming revenue.

The association warns that adding another layer of taxation at the EU level could make regulated operators less competitive compared to offshore, unlicensed platforms. This, in turn, could push consumers toward the black market, where protections are minimal and compliance is nonexistent.

Beyond consumer risks, EGBA also highlighted the potential fiscal impact. A shift toward illegal operators could reduce national tax revenues, which currently generate billions of euros for European economies.

The debate comes amid broader regulatory developments, including recent rulings by the Court of Justice of the European Union that have strengthened player rights against offshore operators. EGBA cautions that such progress could be undermined if the regulated market becomes economically unviable.

While some countries, such as the United Kingdom, are moving toward structured national levy systems to fund research and treatment for gambling-related harm, EGBA stressed that replicating this model at an EU level is impractical without a unified legal framework.

The proposal forms part of ongoing discussions around the EU’s Multiannual Financial Framework for 2028–2034. Any implementation would require unanimous approval from all 27 member states, making its adoption highly uncertain.