In order to finance a budget estimated at almost €2 trillion between 2028 and 2034, the European Commission is actively working to find new sources of revenue.
As part of a broad economic package that aims to even pay the costs of debt generated in the post-pandemic period, the bloc suggested implementing a tax on online betting.
The council’s financial strategy is to charge a 3% tax on the net revenue of online gaming operators, which would inject around €1.9 billion every year into the public coffers.
What are the diplomatic barriers against tax on online betting
The path to full validation of the measures promises to be long and politically exhausting.
The main institutional obstacle is that the fundraising package requires the unanimous approval of all 27 governments that make up the European bloc.
In the specific gaming scenario, the biggest resistance is already widely known: Malta.
The country has an economy that is heavily dependent on the iGaming sector and must fight diplomatic battles to prevent the advancement of this taxation.
The European Council, currently led by Cyprus, has the difficult task of presenting revised numbers soon to try to reach a consensus.
Tech and cryptocurrency giants will also share the burden of the bill
The document discussed in the European Parliament goes beyond the entertainment sector and plans to raise up to €13.3 billion across all fronts.
Large technology companies are at risk of being taxed at 3%, which could generate €5 billion annually.
The great financial fear, in this case, is retaliation from the United States, as the largest share of this cost would fall on American companies.
Finally, the block intends to increase rigor in the cryptoactive segment.
There is a projection of gains of between €3 and €4 billion per year with a 0.1% charge on daily transactions, added to up to an extra €2.4 billion originating from direct taxes on capital gains in the digital market.
