The proposal to harmonise gambling tax across Europe would bring confusion

(AsiaGameHub) – Milen Totev, Chair of The Association of Organisers of Gambling Games and Activities in Bulgaria (AOGGAB), has rejected calls for the harmonisation of gambling taxes across Europe.
In an interview with SBC News, Totev cautioned that although such proposals may seem straightforward and politically appealing, they would actually generate significant chaos and uncertainty within the sector.
Earlier this year, EU Member States were encouraged to consider changes to their taxation policies after a proposal was introduced by Victor Negrescu, Vice President of the European Parliament and member of Romania’s Social Democratic Party (PSD).
Negrescu described the proposal as both an economic and social initiative aimed at improving the overall regulation of gambling throughout Europe.
However, Totev argued that the plan is impractical and would result in major instability for the industry. “Within the European Union, gambling regulations are structured so that each member state independently sets its own rules under national legislation, while still adhering to the broader principles established by the EU,” he explained.
Totev further noted that introducing a uniform tax for all online operators would fundamentally alter the existing framework of European governance. He added, “If such a measure were implemented, numerous critical questions would arise: Who would be responsible for collecting the tax? How would revenue be allocated among member states? How would market size differences be accounted for? How could we prevent imposing an excessive burden on licensed operators? And how would illegal online gambling platforms be addressed?
“Such a shift would not only disrupt markets across Europe but also have far-reaching consequences globally. Many operators, providers, or technology companies operate simultaneously across several jurisdictions. Without a clear legal and operational foundation, a unified fee could create widespread disruption—extending well beyond the online gambling segment alone. Our stance is that while pan-European dialogue remains important, it must respect national regulatory systems and reflect the unique realities of individual markets.
“Any policy that increases costs for legitimate operators without effectively curbing illegal activity will fail to resolve the core issue at hand.”
Looking forward, Totev identified the fight against the unregulated black market as the primary challenge facing the Balkan region—a priority reinforced by the formation of the Balkan Gaming Federation (BGF). According to him, closer cooperation between countries is essential, representing one of the BGF’s key objectives.
He stated, “The BGF aims to facilitate faster information sharing among national associations, promote joint efforts to combat illegal operations, and strengthen relationships with governmental bodies across member states.
“Licensed operators naturally serve as partners in this effort. Every company that holds a valid license, pays taxes in full, and complies with local regulations has a vested interest in identifying and reporting illegal sites. This serves not only to protect businesses but also safeguards consumers and supports public interests.”
As evidence of this approach’s importance, Totev highlighted Croatia’s experience, which underscores the value of an effective detection system targeting illegal operators—efficient monitoring being crucial in curbing the expansion of the black market.
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