Gambling tax: Flanders loses millions 

In Flanders, tax revenue from gambling fell by 8% in two years, from €75 million in 2023 to €69 million in 2025. While Belgians continue to wager billions of euros, the growth of online gambling, which is taxed less heavily than land-based establishments, is putting regional revenues under pressure and reigniting political tensions over tax reform. 

A tax bringing in €6 million less 

Figures provided by Flemish Finance Minister Ben Weyts, at the request of socialist MP Simon Bekaert (Vooruit), reveal a concerning trend for public finances. 

In 2023, Flanders still collected €75 million in gambling taxes. Two years later, that amount had fallen to just €69 million, a decrease of €6 million. 

This decline contrasts with the sector’s still-high level of activity. In Belgium, more than €30 billion is wagered each year, including up to €18 billion in Flanders, according to Simon Bekaert. Gross gaming revenue in the Belgian sector fell from €1.69 billion in 2023 to €1.62 billion in 2025. Activity has therefore declined slightly, but the fall in Flemish tax revenue is proportionally greater. 

“That is a decline of 8 percent in just two years,” Simon Bekaert points out, warning that the shortfall could worsen if no measures are adopted. 

Why is online gambling causing tax revenues to fall? 

The problem mainly lies in the difference in taxation between traditional establishments and digital platforms. 

In Flanders, gambling in casinos and other land-based establishments is taxed at 15%, compared with just 11% for online gambling. 

Player habits, however, are changing rapidly. Between 2023 and 2025, the number of games played in land-based establishments fell by 7.2%, while online activity increased by 5.4%. Today, online gambling accounts for around 60% of activity. 

This shift is gradually changing the distribution of tax revenue. The more players favour digital platforms, the larger the share of gambling activity that falls under the lower 11% tax rate. 

A tax reform that could generate millions 

To correct this imbalance, the Flemish government included an increase in the tax on online gambling in its coalition agreement. The current objective is to raise the rate from 11% to 15%, bringing it into line with the rate applied to land-based establishments. However, the reform remains blocked, even though additional revenue had already been anticipated when budgets were drawn up. 

According to Simon Bekaert, Minister Ben Weyts twice included €40 million in expected additional revenue from the new tax regime. 

“We have already missed out on €80 million,” the socialist MP says. 

However, this estimate is based on an earlier proposal that envisaged a 20% rate rather than the current target of 15%. The €80 million figure therefore does not directly correspond to the revenue that would be generated by the reform currently under consideration. 

Why is Brussels blocking the tax increase? 

The main obstacle lies in the rules determining where gambling operators must pay their taxes. At present, taxation depends on the Region where the operator’s computer server is located. 

This makes any increase introduced solely by Flanders more complicated. If one Region applies a higher rate than its neighbours, companies may be encouraged to locate their servers where taxation is more favourable. 

That is why the Flemish coalition agreement provides for the other Regions to increase their tax rates as well. According to Simon Bekaert, Wallonia has already agreed to follow this approach. Brussels, however, is currently refusing to commit to it. Brussels Finance Minister Dirk De Smedt (Anders) notes that such an increase is not included in the regional coalition agreement. His opposition could even encourage some servers to return to the capital, a development he views positively. 

Taxing players rather than servers: a solution? 

Faced with the deadlock in Brussels, Vooruit is proposing a change to the rules determining where the tax is levied. Instead of taking into account the location of the computer server, the party wants taxation to depend on where the player is located when placing a bet. 

“It would be better for the tax to be collected where the player is located at the time they gamble,” Simon Bekaert says, arguing that such a solution is technically feasible. 

The proposal is supported by CD&V, which is also part of the Flemish governing coalition. 

Christian Democrat MP Stijn De Roo supports the same principle: when someone gambles from Flanders, the corresponding taxes should be collected in that Region. 

Such a change would reduce the fiscal importance of server location and limit the advantages associated with placing servers in a lower-tax Region. 

Taxing stakes directly is also being considered 

Vooruit and CD&V also want to review how gambling tax is calculated. 

Currently, it is levied on operators’ gross gaming revenue, which corresponds to the difference between the amounts wagered and the winnings paid back to players. 

The two parties propose drawing inspiration from the German system, where taxation is calculated directly on stakes. 

The aim would therefore not only be to increase public revenue, but also to discourage gambling behaviour. 

“It directly affects the player and will have a deterrent effect,” Simon Bekaert explains. 

A decision expected in November 

Despite their shared proposals, the Flemish coalition partners do not favour exactly the same strategy. 

Vooruit wants to move forward without waiting for an agreement with Brussels. CD&V would prefer to continue pursuing a negotiated solution between the different governments. The issue is due to be discussed in November by the Consultation Committee, which brings together the federal and regional authorities. 

Ben Weyts nevertheless acknowledges the difficulty of reaching a possible compromise. The minister believes that a solution may largely depend on the parties making up the Brussels coalition, which is itself facing budgetary constraints. 

He also questions whether more favourable taxation for online gambling should be maintained, given the absence of social oversight online, unlike in land-based casinos, which he says retain a certain degree of supervision.