EU Gambling Tax Calculator

Understanding Gambling Taxation in the EU

Gambling taxation across the European Union varies significantly from country to country. Unlike many other industries, there is no harmonized EU-wide gambling tax framework. Each member state sets its own tax rates, tax bases, and collection methods based on national policy objectives.

According to the European Gaming and Betting Association (EGBA), the regulated online gambling market in the EU generated over 30 billion euros in gross gaming revenue in recent years, making taxation a significant revenue source for member states.

Common Tax Bases Used Across Europe

EU countries typically use one of three approaches to tax gambling operators:

Gross Gaming Revenue (GGR) Tax

The most common approach, GGR taxation calculates tax based on the difference between total stakes received and winnings paid to players. This is sometimes called "net gaming revenue" and is favored because it taxes actual operator profits rather than total activity. Countries using this model include the Netherlands (30.5% GGR), Sweden (18% GGR), and Denmark (20% GGR for casino/betting).

For a detailed breakdown of how different countries calculate and apply GGR, see our Regulation Comparison Tool.

Turnover Tax

Some jurisdictions tax operators based on total turnover (total stakes wagered) regardless of payouts. This creates a higher effective tax burden, especially for low-margin products like sports betting. France notably uses turnover-based taxation for sports betting at 10.6% of stakes.

Stakes-Based Tax

Similar to turnover tax, some countries calculate tax based on stakes wagered. France applies a 1.8% stakes tax on online poker. This approach can significantly impact game economics and operator margins.

Additional Licensing Costs

Beyond ongoing gambling taxes, operators face substantial upfront and recurring licensing costs. Italy's license fee of approximately 7 million euros represents one of the highest barriers to entry in Europe. Malta, as a major licensing hub, charges more modest fees (25,000-40,000 euros) but requires annual compliance costs.

The Malta Gaming Authority (MGA) publishes its fee structure, which serves as a benchmark for understanding licensing economics in more operator-friendly jurisdictions.

Tax Rates by Product Type

Many EU countries apply different tax rates depending on the gambling product:

• Online Casino/Slots: Often taxed at higher rates due to perceived risk and margin
• Sports Betting: Rates vary widely; lower margins mean turnover taxes have larger impact
• Poker: Some countries tax rake/fees, others tax overall revenue
• Lottery: Frequently state-monopoly products with special tax treatment

Understanding these distinctions is crucial for operators. Our guide on Online Casino vs Sports Betting regulations explains why product types are treated differently.

How Tax Policy Affects Market Structure

Tax policy significantly influences which operators enter a market and how they structure their offerings. High tax jurisdictions like Greece (35% GGR) tend to have fewer licensed operators and potentially higher consumer prices. Lower tax jurisdictions like Malta attract more operators but may face criticism about regulatory arbitrage.

Research from the European Commission's gambling policy page discusses how tax differentials contribute to cross-border gambling flows within the EU, raising both consumer protection and fiscal questions.

Tax Planning Considerations

Operators considering EU market entry must evaluate:

• Effective Tax Rate: Nominal rates can be misleading; calculate actual burden based on your margin profile
• License Costs: Amortized license fees add to effective taxation
• Compliance Costs: Higher-regulation markets have greater ongoing compliance expenses
• Market Size vs. Competition: Lower-tax markets may be more competitive, reducing actual opportunity

For compliance requirements beyond taxation, the Financial Action Task Force (FATF) sets international AML standards that affect gambling operators in all EU jurisdictions.

Using This Calculator

This calculator provides estimates based on publicly available tax rate information. To use it effectively:

1. Select a country to see its applicable tax rates and structure
2. Choose your product type as rates often differ by vertical
3. Enter revenue figures - use GGR for most jurisdictions, turnover where indicated
4. Compare countries using comparison mode to evaluate market options

The calculator uses simplified flat rates. Actual tax structures may include tiered rates, deductions, or special provisions. For country-specific details, explore our Country Index or individual country pages.

Last Updated: December 2025