Belgium’s gambling sector fears new government taxes may threaten its sustainability.
The Belgian Association of Gaming Operators (Bago) and the Professional Union of Betting Agencies (Upap) warned on Friday that the federal government’s possible strategies to reduce its budget deficit could destabilize the gambling industry.
They speculate a proposed extra tax on Gambling could generate hundreds of millions of euros, a move causing concern for the sector.
“This additional levy comes at a time when Belgium’s gaming industry is already heavily taxed,” the statement read, highlighting concerns of players turning to unregulated operators who neglect player protection measures.
Discrepancy in government estimates
Bago and Upap dispute the government’s estimated 24 billion euros worth of overall bets in Belgium. They insist the actual figure, representing bets by Belgian operators, is around 1.2 billion euros.
They warn that excessive taxation could lead to insolvency for many businesses, costing up to 16,000 jobs both directly and indirectly. They foresee a ripple effect impacting suppliers, subcontractors, amateur sports clubs, and professional sports federations.
The gambling bodies appealed to the federal authorities to consider the “serious irreversible effects of this financial strategy.” They caution that the excessive tax could shut down gambling operations in Belgium. However, they express willingness for continued dialogue and policy deliberation.
