Gambling tax increase in Belgium faces complications

The Flemish government wants to increase the tax on gambling. To be able to do this, Wallonia and Brussels must also agree. At the moment, gambling companies in Belgium pay 15% tax on their profits.

If it were up to Flanders, this amount would increase considerably. However, it is not as simple as it seems. The region where a gambling company’s server is located determines who may collect the tax. This makes the plan a lot more complicated than a simple tax increase.

Support from other regions is needed

The tax on gambling is currently calculated on 15% of the profits of gambling companies. That may sound like a large sum, but the Flemish government wants more. Why? Simple: to generate additional income.

However, Flanders cannot make this decision alone. Because the tax is collected by the region where a gambling company’s server is located, Brussels and Wallonia must also agree to the increase.

And as we know, the regions in Belgium do not always find it easy to get on the same page. 

Server locations determine who collects the tax

The localization of servers creates a whole new challenge in this story. If the servers of a Flemish gambling company are located in Wallonia, then it is Wallonia that receives the additional income.

This makes the situation quite complicated. The regions will therefore have to consult carefully about how they want to approach the tax distribution. For the time being, it remains exciting whether the gambling tax in Belgium will actually increase.

The gambling tax is also a sore point with our neighbors in the Netherlands. There has also been a substantial increase. In 2025 the rate will go to 34.2% and in 2026 even to 37.8%.