A 1 per cent tax could transform gambling in Europe 

A 1 per cent European tax on gambling revenues still seems difficult to implement. But in order to levy a common tax, the European Union may first need to define precisely what it considers to be gambling. 

A 1 per cent tax that goes far beyond a mere fiscal issue 

The proposal emerged in Brussels in February 2026. Victor Negrescu, Vice-President of the European Parliament and a member of the Committee on Budgets, proposed levying 1 per cent on gambling revenues across the 27 Member States. 

The funds raised would be allocated to certain European budgetary priorities, notably education and initiatives supporting young people. The proposal forms part of the discussions surrounding the 2028–2034 multiannual financial framework and has received the support of the S&D political group. In May, the European Parliament’s Committee on Budgets held a formal meeting dedicated to the subject. 

However, several obstacles cast doubt on the prospects for this tax. A tax introduced at EU level requires the unanimous agreement of all 27 Member States. In particular, countries with a significant online gambling industry could oppose a measure that increases the costs for operators they wish to retain within their borders. 

Before imposing a tax, Europe would need to address a delicate question 

The significance of the proposal, however, may lie elsewhere. A legal analysis published in August by Claire Pinson-Bessonnet, founding partner of CPB Avocats and a specialist in European gambling law, highlights a fundamental difficulty. 

Before determining how to tax gambling at European level, Member States would first need to agree on its definition. 

This seemingly simple question could have far-reaching consequences. Which products would fall within the scope of the tax? Which operators would be affected? And, above all, on what common basis would their revenues be taxed? 

Answering these questions would require a degree of harmonisation of definitions that the European Union has never managed to achieve through legislation specifically dedicated to gambling. 

A single European licence remains out of reach 

For nearly two decades, the sector has been monitoring the possibility of a common European gambling licence being introduced. In 2026, there is no indication that such a scheme is about to be established. 

At present, there is neither a single European licence nor a European gambling regulator. Nor do the 27 Member States have a common advertising standard, a uniform framework for responsible gambling or a shared tax model. 

Furthermore, in 2026, the Court of Justice of the European Union confirmed that Member States retain significant discretion to restrict cross-border gambling services when pursuing legitimate public interest objectives. 

Genuine regulatory convergence hinges on anti-money laundering 

Rather than creating specific European regulations for gambling, the EU is gradually establishing common obligations through legislation applicable to several sectors. 

European Regulation 2024/1624 on anti-money laundering is one of the most significant examples. It will become directly applicable in all Member States on 10 July 2027. In particular, the regulation introduces a common definition of gambling services, harmonises customer due diligence obligations and standardises certain requirements relating to the reporting of suspicious transactions. 

Another change could have a particularly significant impact on senior managers: in the event of breaches of anti-money laundering rules, sanctions may be imposed personally on members of senior management, rather than solely on the company. The threshold used to identify beneficial owners is also changing, rising from more than 25 per cent to 25 per cent or more of the shares or voting rights. The European standard is thus becoming stricter than certain national practices. 

This harmonisation now has its own supervisory framework. The European Anti-Money Laundering Authority has been operational since July 2025 and is based in Frankfurt. 

In July 2026, it finalised draft standards establishing a common four-tier system to assess the severity of offences relating to money laundering and terrorist financing. 

A public consultation, open until 27 September, also addresses how supervisory authorities should assess the inherent money laundering risks posed by regulated entities in the non-financial sector. Gambling operators are explicitly included. 

For Miguel Luís, Head of Compliance, Anti-Money Laundering and Data Protection at Lebull, this consultation represents an opportunity for professionals in the sector to contribute to the development of the standards that will subsequently be used to assess their compliance arrangements. 

Regulatory costs that are already beginning to take their toll 

Unlike the proposed 1 per cent tax, the new European anti-money laundering rules are no longer a political hypothesis. The legal framework is in place, the date of implementation has been set and the supervisory authority is already operational. 

Industry estimates cited by Miguel Luís put the increase in operational costs associated with full compliance for medium-sized operators at between 8 per cent and 15 per cent. Enhanced due diligence procedures for customers deemed to be high-risk would constitute the greatest burden. 

Digital technology is becoming another tool for coordination 

European harmonisation does not stop at anti-money laundering rules. Regulation of digital services constitutes a second layer of common rules that may have direct consequences for the sector. 

In the summer of 2026, nine European regulators issued a joint statement targeting unauthorised prediction market platforms during the World Cup. 

In the Netherlands and Belgium, the authorities also reported thousands of adverts relating to illegal gambling to Meta in 2025 and 2026. 

Europe is harmonising rules without creating a single system 

The trend that is emerging is therefore not one of a single European regulatory framework for gambling. Rather, it involves the gradual establishment of a common framework through cross-cutting regulations concerning, in particular, money laundering, digital services, data protection and consumer protection. 

National licences continue to exist and Member States retain a high degree of autonomy. However, the obligations that operators must meet are gradually becoming more similar across the EU.