Brussels plans to maintain its current tax rate on online gambling despite opposition from Flanders and Wallonia, raising concerns about tax competition between Belgium’s regions.
Server location determines which region receives the tax revenue, prompting concerns that operators could relocate their servers to Brussels to benefit from the lower rate.
Online gambling is currently taxed at 11% of gross gaming revenue (GGR). Gambling activities at physical establishments are taxed at 15%.
Flanders and Wallonia want the higher 15% rate to apply to online gambling as well, while Brussels intends to retain the lower rate. One operator has already moved its servers to the capital, intensifying concerns in Flanders and Wallonia over potential tax revenue losses.
Brussels Budget Minister Dirk De Smedt faced questions from regional parliamentarians over the issue as tensions between the regions continue.
The dispute first emerged in the summer, when Flemish Finance Minister Ben Weyts criticised what he described 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.”
At the national level, the Council of Ministers recently approved at second reading a draft royal decree implementing further legal changes following the transfer of the Gambling Commission to the Federal Public Service (FPS) Economy.
The regulatory changes follow legislation transferring gambling responsibilities from the Justice portfolio to the Economy portfolio. That law was published in May and took effect on 1 June, formally replacing references to FPS Justice with FPS Economy in the Gambling Law and transferring responsibility for the sector.
The Government began the process in 2025, arguing that gambling had developed beyond an issue primarily concerning public order into an economic sector requiring oversight of competition alongside player protection.
Belgium’s total industry GGR remained stable at €1.62bn ($1.82bn) in 2025, down just 0.1% year-on-year
