EU Proposes Controversial Harmonised Gambling Tax
A new political proposal in Brussels could reshape the financial landscape for online gambling operators across Europe. Victor Negrescu, a Member of the European Parliament, has introduced an amendment for a coordinated 1% levy on gambling gross revenue. This EU gambling tax aims to generate €2 to €4 billion annually for education and youth policies.
The proposal, backed by over 20 MEPs, argues that a flat levy could harmonise the fragmented tax rates across the EU, which currently range from 5% to nearly 40%. However, the idea has met with significant resistance from legal and industry experts who warn of dire consequences. These latest gambling regulation updates have sparked a heated debate.
Claus Hambach, a specialist in gambling regulation, dismisses the proposal as an additional money grab, not true harmonisation. He argues that any extra tax would simply grow the black market, a sentiment echoed by others. In high-tax jurisdictions like Germany, where a 5% turnover-based stake tax already exists, operators struggle for profitability, and an additional levy could be the final straw.
Legal and Political Hurdles Remain
Beyond the economic concerns, the proposal faces immense legal and political obstacles. Taxation is largely a matter of national sovereignty, and any EU-wide harmonisation on indirect taxes requires unanimous approval from all member states, a highly unlikely outcome. Giulio Coraggio of DLA Piper notes the proposal is more of a political signal than an imminent legislative change.
Even the Malta Gaming Authority (MGA) remains cautious, stating discussions are at a "very preliminary" stage. The consensus among critics is that true harmonisation must begin with regulation, not taxation, as member states are unwilling to cede fiscal control.
Netherlands Pushes for iGaming Ban and Stiffer Penalties
In the Netherlands, opposition parties are pushing for a significant clampdown on the online gambling market. The ChristenUnie and Socialist Party have introduced a motion calling for a complete ban on iGaming advertising. They cite a proportional increase in problem gambling since the market was re-regulated in 2021, with 450,000 new players joining and young adults (18-21) accounting for 22% of active accounts.
A key part of the proposed Netherlands iGaming ban is a dramatic increase in the fining power of the regulator, Kansspelautoriteit (KSA). The motion seeks to allow KSA fines of up to 100% of an operator's annual revenue for targeting the Dutch market illegally, a massive jump from the current 10% cap. This comes after the KSA issued a record €24m fine to Novatech but lamented that the cap prevented a more suitable penalty of over €100m.
The proposal also includes extending the minimum self-exclusion period in the Cruks system from six to 12 months. While these measures aim to protect consumers, the challenge of enforcing fines against offshore unlicensed operators remains, as demonstrated when Novatech relinquished its Curaçao licence shortly after the KSA's ruling.
Belgium Investigates Eden Hazard's Stake Partnership
A high-profile endorsement deal has drawn regulatory scrutiny in Belgium. The Belgian Gambling Commission (KSC) has opened an investigation into football icon Eden Hazard's new role as a global brand ambassador for Stake. The core issue is that Stake is not a licensed operator in Belgium, and promoting illegal gambling services is prohibited.
The investigation will determine if the Eden Hazard Stake campaign is targeting a Belgian audience, given Hazard's large following in his home country. If found in breach, Hazard could face a warning and a potential administrative fine of up to €700,000. This case highlights the growing attention regulators are paying to celebrity endorsements in the gambling sector.
"Measures like this simply demonstrate a deep misunderstanding of how the gambling economy works. We’re already seeing huge growth in the black market." - Justin Franssen, a Dutch lawyer at Franssen Tolboom, on rising tax rates.
Australia Strengthens Anti-Money Laundering Framework
Shifting to Oceania, Australia’s anti-money laundering regulator, AUSTRAC, is implementing significant reforms. As part of the country's new AML/CTF (Anti-Money Laundering/Counter-Terrorism Financing) regime, AUSTRAC is launching website changes on March 30 to improve usability and access to guidance.
The AUSTRAC AML reforms, stemming from the AML/CTF Amendment Bill 2024, are designed to modernise the system and align it with global standards. At a recent industry event, AUSTRAC CEO Brendan Thomas issued a stark warning, stating that gambling remains "at the frontline" of AML regulation. He stressed that while perfection is not expected on day one, "where risks remain unmanaged, regulatory action will follow."
AUSTRAC's serious approach is underscored by its ongoing case against Entain's Australian brands. Thomas urged businesses to develop credible implementation plans endorsed by senior leadership, reinforcing that the new online gambling laws are about achieving tangible outcomes in protecting Australia from criminal harm.
