Gambling is a big deal in the economic and social landscape of many European countries. Land-based casinos, online platforms, bookmakers, and lotteries make up a huge industry that brings in billions of euros every year. European players actively use both legal national services and international online operators, which stimulates the development of the gambling market and necessitates clear financial regulation.
In some countries, such as Malta, the Netherlands, and Sweden, the gambling industry has become a significant source of revenue for the budget, for example, in Poland, you can try a kasyno depozyt 20 zł z Blik.. Casinos create jobs, attract tourists, and pay taxes and license fees that are used to fund healthcare, education, and gambling addiction programs. Some states even own casinos or have a stake in them, which provides direct revenue to the state treasury.
Gambling regulation in Europe
The gambling industry in Europe is regulated by the national laws of each individual country, so the approach to casinos can vary significantly from one country to another. Some countries have a liberal policy towards gambling, supporting both land-based and online casinos, while others impose strict restrictions or partially ban gambling.
- In most EU countries, gambling is legal but subject to licensing. Casino owners must comply with legal requirements regarding financial transparency, player protection, and anti-money laundering.
- In some countries, gambling is only allowed in specially designated areas or is completely controlled by the state. Online gambling is often restricted or only allowed for state-owned operators.
Malta is an example of a liberal yet highly regulated jurisdiction. Thanks to the Malta Gaming Authority (MGA), the country has become attractive to international online casino operators. The MGA issues licenses to companies that adhere to strict standards of security, responsible gaming, and financial reporting. Advantages of the Maltese model:
- Transparent and stable legal framework
- Tax incentives for operators
- Recognition of MGA licenses in many countries
Until recently, Germany had fragmented gambling legislation, but in 2021, the State Treaty on Gambling (GlüStV 2021) came into force. According to it:
- Online casinos are permitted but require a license
- Restrictions on bets, bonuses, and deposits have been imposed
- Operators’ activities are strictly controlled
In addition, each federal state may establish additional rules, which complicates market access. The main focus is on player protection and the prevention of addiction.
In Sweden, the gambling market was liberalized in 2019 when a new licensing system was introduced. Casino activities are supervised by the state regulator Spelinspektionen, which:
- Issues licenses to both land-based and online operators
- Monitors compliance with responsible gaming rules
- Maintains a national register of self-excluded players (Spelpaus)
The Swedish model combines market openness with strict state supervision. Casinos must operate transparently, report their financial results regularly, and adhere to socially responsible policies.
Tax policy on casinos
Financial interaction between casinos and states in Europe is largely based on the taxation of the gambling industry. Taxes are a major source of revenue for many countries that actively develop or regulate the gambling industry. However, approaches to taxation vary significantly depending on government policy, market size, and economic priorities.
Gambling operators in Europe typically pay several main types of taxes. The most common is the gross gaming revenue (GGR) tax, which is calculated as the difference between the total amount of bets placed by players and the winnings paid out. This tax is directly dependent on the actual income of the business, which makes it flexible and fair. The GGR rate varies from country to country: for example, in Germany it is 5.3% for online gambling, in Malta it ranges from 5% to 15%, in Sweden it is 18%, in France it ranges from 20% to 25%, and in the UK it is 15%.
The second element of the tax burden may be value added tax (VAT). In most countries, gambling services are exempt from VAT as a specific type of activity. However, in some cases, VAT is applied to ancillary services, such as food or entertainment programs within land-based casinos.
Special license fees also play a significant role. Gambling operators must pay fixed or proportional fees for obtaining, maintaining, and renewing licenses. For example, in Malta, the annual license fee can start at €25,000, in Germany at €20,000, in France at €50,000, and in the UK at around £50,000. In Sweden, it is around SEK 300,000, which is also equivalent to several tens of thousands of euros.
Thus, tax policy on casinos in Europe is diverse but generally aimed at combining effective state control, stable budget revenues, and the promotion of legal and responsible business.
State revenues from gambling
Gambling is a significant source of revenue for the state budgets of many European countries. Casinos, as part of this industry, not only provide tax revenues but also stimulate the development of related industries such as tourism, entertainment, and social programs. The contribution of gambling to the budget system often constitutes an important share of revenues, which makes it possible to finance various state initiatives.
In countries with a developed gambling market, casino revenues can account for between 1% and 5% of total budget revenues. This figure depends on the size of the industry, the tax structure, and the overall economy of the country. Examples of casino revenues in different countries:
- Malta
Thanks to the high concentration of online casinos and a liberal regime, the gambling industry provides about 12% of tax and license fee revenues to the state budget. In 2023, Malta received approximately €150 million in revenue from the gambling business. - Sweden
In 2023, the state regulator Spelinspektionen recorded tax revenues from gambling at around 2.5 billion Swedish kronor (~€230 million), which is about 1.5% of the country’s budget. - France
The French gambling industry is one of the largest in Europe. In 2023, state revenues from casinos, bookmakers, and online gambling amounted to over €2.7 billion, accounting for about 3% of tax revenues. - United Kingdom
Casinos and online gambling brought the state approximately £3.5 billion in 2023 (approximately 4% of budget revenues).
Revenues from the gambling business are used not only for the general budget, but also for social initiatives:
- Part of the taxes and license fees are used to fund educational programs, including financial literacy campaigns.
- Casinos often support sporting events and sponsor teams or individual competitions. State budgets use the proceeds to develop sports infrastructure.
- A significant portion of the funds goes to support rehabilitation centers, prevention programs, and psychological assistance for people addicted to gambling.
In some countries, such as Germany and Sweden, legislation requires operators to make mandatory contributions to social projects, which ensures stable funding for combating the negative effects of gambling.
State ownership or partial participation in casinos
In some European countries, the state not only regulates the gambling business but also directly owns or has partial ownership of casinos. This approach allows the state to control the gambling market, generate additional revenue, and ensure responsible business practices. Examples of state ownership and partial participation:
- The Austrian company Casinos Austria AG is one of the largest casino operators in Europe, and most of its shares are owned by the state through a holding structure. This allows the government to generate stable income from the company’s activities, control the development of the gambling sector, and influence regulatory processes.
- In Finland, gambling is completely controlled by the state-owned company Veikkaus, which has a monopoly on lotteries, betting, and casinos. Veikkaus transfers a significant portion of its profits to the state budget, which is then allocated to social, cultural, and sports programs.
- The state-owned company Norsk Tipping controls most types of gambling in the country, including casinos. All profits are also directed to state needs.
Financial benefits for the state as a shareholder
- As a shareholder, the state receives dividends from casino profits, which creates a stable source of income independent of taxes and fees.
- By owning a share or controlling a casino, the state can manage financial flows more effectively and ensure transparency in the distribution of revenues.
- Thanks to state control over casino profits, a significant portion of the funds is directed to finance education, health care, sports, and other socially significant initiatives.
- State participation helps reduce the risks associated with illegal gambling and ensures a responsible approach to the organization of gambling.
State ownership of casinos is an effective tool that helps countries balance economic benefits with social responsibility in the field of gambling.
Cooperation between countries
In the gambling industry, where money flows are extremely high, international cooperation between European countries is crucial. It aims to combat illegal financial transactions, harmonize security standards, and increase the transparency of gambling operators.
Money laundering through gambling is one of the main threats in the industry. To prevent this, European countries are implementing coordinated measures in line with the European Anti-Money Laundering Directive (AMLD). Key areas of joint action:
- Mandatory player identification (KYC) countries require operators to verify the identity of players to identify risky transactions.
- Monitoring of suspicious transactions in cooperation with financial monitoring authorities (e.g., FIUs — Financial Intelligence Units) casinos are required to report large or atypical transactions.
- Standardized reporting procedures European countries are developing uniform approaches to financial reporting for gambling operators.
One form of financial cooperation between countries is the automatic exchange of tax information. This practice allows EU tax authorities to track the income that gambling operators receive in several jurisdictions and prevent tax evasion.
European countries also cooperate within the DAC (Directive on Administrative Cooperation) initiative, which provides for the exchange of information on the income of individuals and legal entities in a cross-border environment.
European associations and bodies play an important coordinating role in the gambling business. One of the main ones is:
- EGBA (European Gaming and Betting Association) — an association of leading online gambling operators in Europe. The organization promotes:
- the development of uniform standards for fair gaming;
- the introduction of a responsible gambling code;
- lobbying for transparent rules in the gambling market;
- the exchange of best practices between countries.
Also worth mentioning are:
- GREF (Gaming Regulators European Forum) — a platform for dialogue between state regulators.
- AML Europe Network — a network for cooperation on anti-money laundering issues.
In conclusion, financial interaction between European countries and gambling operators is complex but clearly structured. It covers several key areas: taxation, licensing, state ownership of casinos, and international cooperation on security, transparency, and anti-money laundering.
Tax policy, including gross gaming revenue (GGR) tax, special licensing fees, and market regulation through state-owned or partially state-owned companies, allows countries to generate stable budget revenues. At the same time, transparent and responsible regulation promotes the socially responsible development of the industry.
With clear standards, effective oversight, and information sharing between countries, the potential for revenue growth from the legal gambling sector remains significant. This is particularly relevant for countries that are just starting to develop the industry or seeking to bring it out of the shadows.
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