A proposal to increase the tax rate on online gambling in Belgium has sparked a dispute between regional governments. Flemish Finance Minister Ben Weyts is calling for a coordinated approach, while Brussels Finance Minister Dirk De Smedt opposes the increase.
The Flemish government is seeking to raise the tax on online gambling from 11% to 15%, aligning it with the rate applied to other forms of gambling, including casino games and horseracing wagering. Backed by the Vooruit party, the proposal aims to address what Weyts describes as an unfair tax advantage for online gambling.
Weyts told local media: “It is no longer justifiable that online gambling is fiscally incentivised, while there isn't even social control online.”
Under Belgium’s current system, gambling operators pay tax in the region where their servers are located. As these servers can be moved relatively easily, Weyts is calling on Brussels and Wallonia to introduce the same increase to prevent operators from relocating to regions with lower tax rates.
However, Brussels has rejected the proposal. De Smedt pointed to Brussels’ recent extension of its casino concession, arguing that increasing the gambling tax now would unfairly change the conditions for operators. “It is not correct to change the rules of the game now,” he said, adding that “there are also servers for online gambling in the buildings.”
The disagreement has also highlighted tensions between the two regions, with De Smedt criticising Weyts for failing to consult Brussels before advancing the proposal, despite previously acknowledging that regional agreement would be required.
The Belgian Gaming Commission recently issued a statement warning of potential delays to gambling licence applications during the summer holiday period
