Milen Totev, head of the Association of Organisers of Gambling Games and Activities in Bulgaria (AOGGAB), has spoken out against proposals to standardise gambling taxes across Europe.

In comments to SBC News, he noted that despite the apparent simplicity and political appeal of such an approach, “it would lead to chaos and uncertainty”.

Earlier this year, EU Member States began discussing a potential shift in taxation policy in the sector following an initiative by Victor Negrescu, Vice President of the European Parliament and member of Romania’s Social Democratic Party (PSD).

Negrescu presented the proposal as an economic and social measure that could improve the regulation of the gambling sector across Europe.

However, Totev argued that the idea is unrealistic and could create significant uncertainty in the industry.

“In the European Union, gambling is regulated in such a way that each member state determines the rules for the sector independently within the framework of its national legislation and in compliance with the general principles of the EU”, he emphasised.

Totev added that as a result, “a common tax for all online operators would mean a change in the current logic of the European framework”.

“If such a measure appears, many questions will arise: who collects it, how is it distributed between the countries, how is the size of each market taken into account, how is an additional burden avoided for licensed operators, and how is the illegal online market treated.

“Such a change will create chaos and uncertainty not only in Europe. Markets are already connected on a global scale. One operator, one provider or one technology company often operates across several jurisdictions. 

“If a common fee is introduced without a clear legal and practical framework, the impact will be felt far beyond the online segment itself. Our position is that the European conversation is important, but it must take into account national regimes and the reality of individual markets. 

“A measure that increases the burden on licensed operators without limiting the illegal market will not solve the underlying problem.”

Looking ahead, he stressed that the main priority for the Balkan region remains the fight against the illegal market, in the context of the formation of the Balkan Gaming Federation (BGF).

Totev noted that stronger cooperation between countries could be a key factor in addressing this issue, describing it as one of the “main missions of the BGF”.

He said: “BGF will work for faster exchange of information between associations, common initiatives against the illegal market and better relations with institutions in each country.

“Legal operators are a natural partner in this process. Every operator who has a license, pays their taxes and complies with the rules has an interest in illegal sites being identified and reported. This is not only business protection, but also consumer and state interest protection.”

As an example, he pointed to Croatia, highlighting the importance of platforms for detecting illegal operators and stressing that effective detection is crucial in curbing the growth of the shadow market.

 

 

 

 

 

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