Brussels rejects tax increase, angering Flanders 

Brussels is refusing to increase taxation on online gambling despite pressure from Flanders and Wallonia. By keeping the rate at 11%, the Brussels-Capital Region hopes to attract operators and increase its tax revenue. 

Brussels hopes to collect an additional €20 million 

The Brussels-Capital Region intends to use its tax policy to attract more online gambling activity. Brussels Budget Minister Dirk De Smedt confirmed this approach during discussions with regional MPs on Monday, 12 October 2026. The Brussels government expects its tax revenue to increase by €15 million in 2027, followed by €20 million per year in both 2028 and 2029 as a result of this strategy. 

The Brussels strategy is already beginning to produce concrete effects. Dirk De Smedt confirmed to MPs that an operator based in Wallonia had already moved its servers to the capital. According to several matching sources cited by Le Soir on 14 October 2026, the operator in question is believed to be Star Casino, which operates the Chaudfontaine casino. The company did not wish to comment on the information. 

Another industry player, Napoleon Games, has also expressed its intention to install its gaming servers in Brussels. According to information published by the newspaper, however, that transfer had not yet taken place. 

These relocations have major tax implications. In Belgium, the Region benefiting from online gambling tax is determined by the location of operators’ computer servers. A company that moves its servers to Brussels can therefore shift the corresponding tax revenue to the capital, at the expense of the Region where its infrastructure was previously located. 

Flanders loses millions and grows concerned 

The situation is generating increasing opposition in Flanders, where the authorities want to raise taxation on digital gambling. 

The Flemish coalition agreement provides for an increase in this tax, but only if rates are harmonised across the country’s three Regions. Brussels’ refusal therefore represents an obstacle to that ambition. 

According to figures reported by De Standaard and repeated by Le Soir, Flanders collected €75 million in 2023 compared with €69 million in 2025, a decline of €6 million in two years. This comes as players increasingly move towards digital platforms taxed at 11%, at the expense of land-based establishments, which are taxed at 15%. 

Flanders now fears that an additional share of its tax revenue could disappear if operators choose to install their servers in the Brussels-Capital Region. 

Flemish government denounces a tax haven 

The office of Flemish Budget Minister Ben Weyts openly criticises Brussels’ position and hopes that some parties in the regional majority will change their stance. 

“We continue to hope that some parties in the Brussels government will distance themselves from this policy aimed at turning Brussels into a kind of tax haven for online gambling.” 

The Flemish government considers online gambling particularly dangerous because of the lack of direct social control and the risks faced by vulnerable people. 

Brussels, however, disputes the idea that higher taxation would be an effective response to gambling addiction. Dirk De Smedt points out that protecting players against addiction does not fall under regional powers relating to taxation. 

“I see absolutely no link between the level of taxation and the degree of addiction,” the Brussels minister says. 

He also highlights what he considers to be a contradiction in the reasoning of the other regional governments: they hope to increase tax revenue while at the same time presenting the tax increase as a way to reduce gambling activity. 

Brussels casino case reignites tensions 

The tax dispute has also entered discussions surrounding the award of the new concession for the City of Brussels casino. 

Several candidates for the concession mentioned in their applications that they intended to move their servers to the Brussels-Capital Region. This raised questions among some MPs about possible regional intervention in a procedure that falls under the authority of the City. 

Dirk De Smedt firmly rejected those suggestions. 

“I have never, at any time, had the slightest contact with anyone for the purpose of intervening in an award procedure,” the minister said. “The multi-year budget tables do not include any additional revenue resulting from the award of the new Brussels casino concession.”