EU Gambling Tax Proposal Sparks Fierce Opposition from Horse Racing Industry

EU Gambling Tax Proposal Sparks Fierce Opposition from Horse Racing Industry

The Push for an EU-Wide Gambling Tax

European institutions are currently evaluating multiple options to increase the Union’s budget between 2028 and 2034. Among these proposals, a pan-European gambling tax has emerged as a controversial possibility. First proposed in February by Victor Negrescu, Vice President of the European Parliament, this levy could generate between €2bn-€4bn annually for EU coffers.

The proposal comes at a sensitive time for Ireland, which currently holds the Presidency of the Council of the EU. This position gives Irish officials significant influence over the EU agenda until June 2023.

Horse Racing Industry Circles the Wagons

Industry Groups Mobilize

Two major horse racing organizations have launched coordinated lobbying efforts:

  1. European and Mediterranean Horseracing Federation (EMHF)
  2. European Trotting Union (UET)

These groups have directly approached:

Their core argument: horse racing betting must be excluded from any EU-wide gambling tax scheme.

Why the Special Treatment?

The horse racing industry presents several unique considerations:

Wider Industry Backlash Against the Proposal

Gambling Sector Concerns

The broader gambling industry has voiced strong objections through Maarten Haijer, former Secretary General of the European Betting and Gaming Association (EGBA). Key concerns include:

Polish Industry’s Warning

The Polish gambling sector has raised additional flags, arguing the tax would:

  1. Impose unsustainable financial burdens
  2. Violate principles of fair competition between EU members

Precedent Across European Markets

The UK Case Study

The UK’s recent experience provides a cautionary tale:

The High Stakes for European Horse Racing

Dr. Peter Truzla, President of the UET, summarizes the industry’s existential threat: “Legal betting funds the entire horseracing ecosystem. An additional EU tax would divert business to illegal operators, reducing revenues for both governments and racing while weakening consumer protections.”

Current Status

Despite the backlash, Negrescu’s office confirms all financing options remain under consideration. The coming months will prove crucial as Ireland’s EU Council Presidency could shape the proposal’s final form. Horse racing stakeholders hope their special status and economic arguments will win them an exemption similar to the UK model.