Malta has stepped up its opposition to a proposed European Union levy on online gambling as debate grows over new funding for the bloc’s next long-term budget. Prime Minister Robert Abela has stated that Malta will oppose any EU-wide tax that could affect the country’s gaming sector. The proposal would place a levy of about 1% on revenue or turnover from major online gambling operators. Supporters estimate it could raise between €2 billion and €4 billion a year for EU programmes.
Malta draws a line on tax powers
Abela told parliament that Malta would not accept EU-wide taxes used to fund the bloc’s central budget. The position covers the gambling levy now being discussed in European institutions. Malta hosts many licensed online gaming operators serving markets across Europe. Gaming contributes more than 10% of the country’s gross domestic product.
Maltese representatives have argued that an EU gambling tax would raise costs for licensed operators. They also warn that higher charges could push companies and customers toward unregulated markets outside the European Union.
Social Democrats back 1% levy
The proposal has been promoted by Romanian MEP Victor Negrescu and backed by the Socialists and Democrats group in the European Parliament. It is being discussed as part of wider plans to fund the EU’s next multiannual financial framework.
Supporters have proposed using the money for education, youth programmes, mental health services and gambling harm prevention. The measure could also help the EU repay borrowing linked to its Covid-19 recovery programme.
The proposal has not been adopted by the European Commission. The Commission’s current funding plans do not include a harmonised gambling tax.
Unanimous approval would be needed
EU-wide funding measures need approval from all member states. Malta could therefore block a gambling levy even if other countries support it.
David Casa, head of Malta’s Nationalist Party delegation in the European Parliament, has also pledged to oppose the measure. He described an EU-level online gaming tax as harmful to Malta’s licensed gaming sector.
The debate comes as Malta changes parts of its own gambling tax framework. From October 1, 2026, the country will narrow the VAT exemption for gambling and betting services, which could make more gaming-related supplies subject to VAT.
National rules still differ
Gambling tax and licensing rules remain largely controlled by individual EU member states. Countries apply different tax rates, product rules and player protection requirements for online casino, sports betting and lottery products.
The EU has focused mainly on consumer protection, anti-money laundering rules and cross-border cooperation. Any EU-wide gambling tax would need agreement on both funding rules and the treatment of a sector regulated mainly by individual countries.
