Malta rejects a tax that changes everything
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18 Mar 2026 •
Reading time: 3 minutes
Malta is firmly opposed to a proposed European tax on online gambling. This initiative could upset the balance of a sector that is strategic for several Member States, particularly for the Mediterranean island, which has made it one of the pillars of its economy.
Strong opposition
The debate centres on a proposed levy targeting online gambling operators. An initiative which, according to its proponents, would harmonise tax practices and provide a better regulatory framework for a rapidly expanding sector.
Malta is one of the Member States most opposed to the idea of a common European tax. The online gambling sector is one of the country’s economic pillars. Hundreds of companies are based there, drawn by a favourable regulatory framework and advantageous tax regime. The industry generates thousands of jobs and contributes significantly to national tax revenue. Consequently, any reform likely to erode this attractiveness is perceived as a strategic threat.
From the European Union’s perspective, the argument is different. The aim is to tackle tax disparities between Member States and to prevent what some regard as unfair competition. Countries with higher tax rates feel they are at a disadvantage compared to jurisdictions such as Malta. But this drive for harmonisation clashes with a fundamental principle of the European Union: the fiscal sovereignty of Member States.
A delicate balance between regulation and competitiveness
For some experts, harmonisation could enhance transparency and consumer protection. But for others, it risks stifling innovation and driving operators to markets outside Europe.
Malta insists that its regulatory framework is not lax, but rather rigorous and recognised. The country emphasises that it complies with European standards and cooperates with other Member States in the fight against money laundering and the protection of players.
Among businesses, uncertainty is growing. The EGBA believes that a potential European tax could profoundly alter the sector’s economic balance. Margins, already under pressure in certain markets, could be affected. Some operators also fear increased administrative complexity. A supranational tax would be added to existing national obligations, making tax management even more complex.
To back up its concerns, it cites the examples of the Netherlands and Germany, where increases in gambling taxes have not generated the expected revenue.
Belgium under tax pressure
The situation in Belgium perfectly illustrates the tensions surrounding the taxation of gambling. Belgium already applies a structured and relatively high tax regime that relies primarily on operators rather than players.
This taxation varies according to the type of game. Sports betting can be taxed at up to 15% of gross margin, whilst online gambling is subject to a rate of around 11% in certain regions such as Wallonia. But it is land-based casinos in particular that face the highest tax rates: slot machines can be taxed progressively up to 50%, depending on the revenue generated.
This level of taxation is currently the subject of growing political debate. Some politicians, particularly within the N-VA, are calling for a reduction in the tax burden on casinos. In their view, excessive taxation undermines the competitiveness of legal operators in the face of increasingly aggressive international and illegal competition. This position echoes concerns expressed at European level.
An outcome that remains uncertain
At this stage, no final decision has been taken. Discussions are continuing at European level, and positions remain far apart.
The future of this tax will depend on many factors: the balance of political power, pressure from Member States, and the ability to find a compromise acceptable to all.