Is there any prospect for EU harmonisation in the fight against the black market after Malta’s veto stance?

(AsiaGameHub) –   The possibility of an EU-wide gambling tax across member states—an idea that has been floating around for months—has drawn predictable pushback from Malta’s government.

David Casa, an MEP from Malta’s Partit Nazzjonalista (PN), has stated that if his nationalist party wins the upcoming election, it will veto Victor Negrescu’s proposals.

Under EU rules, Malta alone has the power to block any tax changes. Negrescu emphasized that such a tax would significantly harm Malta’s economy, as the gambling sector contributes 10% of the country’s GDP.

Malta’s general election is fast approaching on May 30, with many polls predicting the PN will secure victory at the ballot box.

Negrescu—Vice President of the European Parliament and a member of the Budget Committee—has put forward plans widely seen as highly ambitious, yet they could deepen the debate on how the EU unites to tackle the black market.

However, with Malta doubling down on its opposition to the proposals, this path seems effectively closed to EU regulators.

This follows earlier efforts to introduce a harmonized tax, which also faced heavy criticism—exemplified by Milen Totev, Chair of Bulgaria’s Association of Organisers of Gambling Games and Activities (AOGGAB), who warned such measures go against the EU’s core logic.

While some parts of the EU are pushing for aligned action against illicit operators, getting every member state on board with future steps is proving to be a major obstacle.

A 1% levy has some backing within the EU, and discussions about its feasibility are set to continue today.

EU Budget Commissioner Piotr Serafin will spearhead calls for the levy as part of Brussels’ review of funding for the bloc’s proposed €2trn Multiannual Financial Framework (MFF) for 2028–2034.

In a previous update to iGaming Expert, Negrescu argued that Europe’s gambling sector has evolved into one of the bloc’s largest digital industries, generating “tens of billions of euros annually” while increasingly operating cross-border under the EU single market framework.

Negrescu highlighted the proposal should not be viewed as an extra burden on consumers, but rather a targeted contribution from major operators that benefit from EU market access.

“Every day in this House, we call for more investments, but citizens also expect us to answer how we finance everything fairly and responsibly,” Negrescu told iGaming Expert.

Achieving harmonized tax rates or a bloc-wide levy will be a challenge for the EU to pass. Yet, when it comes to organized crime, the EU has taken a unified approach—and given the scale of unlicensed gambling, a coordinated strategy should be a serious consideration.

Given gambling revenue’s importance to Malta’s economy, it’s unsurprising the country is reluctant to burden its operators with an additional tax, especially as it heads into an election.

Still, for the industry’s long-term sustainability and success, EU efforts to cripple black market engagement shouldn’t be hindered by domestic priorities.

While this is a distinct challenge, the EU has enforced aligned efforts in other sectors to tackle illicit activity—renewing optimism that a universal approach to unlicensed gambling can be found across the bloc.