Malta is leading opposition to a proposed European Union tax on online gambling as member states begin negotiations over the bloc’s next €2trn budget. Four unnamed European diplomats noted that Italy, Portugal and Spain are also opposed to the tax.
Malta’s leaders argue that an EU-wide tax could put pressure on the regulated gambling sector, encourage customers to use illegal operators and make the European market less competitive.
According to media reports, Portugal is reluctant to back the levy. A Portuguese official said higher taxes could reduce revenue from state-run betting and lotteries, which is currently channelled towards supporting healthcare and youth programmes.
Supporters of the gambling levy argue that it could raise more than €13bn over the next budget cycle while also helping to address gambling-related harm as a public health issue.
Previously, EU leaders instructed Ireland, which took over the rotating EU presidency in July, to propose new sources of funding for the EU budget for 2028 to 2034 by October. The leaders discussed the matter during a meeting in Brussels.
Among the proposed revenue sources are an EU-wide tax on online gambling operators and large technology companies. Other options include a tax on uncollected e-waste, a share of tobacco excise duty and an annual lump-sum contribution from large corporations operating and selling in the EU.
Ireland is now tasked with assessing which of these options, or a combination of them, has the greatest chance of securing unanimous support from all 27 EU member states ahead of the next EU summit, scheduled for October.
Any new EU-wide taxation framework requires unanimous approval from all member states.
EU governments must agree on the budget by the end of 2027, but some member states prefer a deal this year to avoid elections in some countries complicating negotiations
