Malta Rejects EU Gambling Tax

€1.9 Billion Annual Tax

Malta has joined Italy, Spain and Portugal in rejecting a proposed European Union tax on online gambling, according to Politico, citing four diplomats familiar with the discussions.

The European Commission estimates that the 3% levy on net gambling turnover could generate approximately €1.9 billion annually between 2028 and 2034.

According to the projections, Spain would face the largest burden, at around €414 million per year. Malta, meanwhile, would be expected to contribute approximately €165 million annually, exceeding the €133 million estimated for Italy.

Malta Questions the Economic Impact

The size of the proposed tax has raised particular concerns in Malta, whose economy is considerably smaller than Italy's. The country believes the measure could have a disproportionate impact on its economy and its significant online gambling industry.

Maltese Prime Minister Robert Abela had already expressed his opposition during a parliamentary address on June 22. At the time, he said his government could not accept a tax imposed at EU level and linked Malta's position to the protection of its fiscal sovereignty.

Unanimity Will Be Key

The proposal also faces a major political hurdle. New resources for the European Union budget require the unanimous approval of all 27 member states.

This means that any country can block the initiative, giving Malta and the other opposing governments a decisive position in the upcoming negotiations over the future of the EU online gambling tax.