Regional Governments at Odds Over Proposed Belgium Online Gambling Tax Hike

A plan to raise the tax on online gambling in Belgium has ignited a conflict between the country’s regional administrations, with Flemish and Brussels ministers taking opposing stances.

Tax Increase Proposal

The Flemish government has put forward a measure to increase the online gambling tax rate from 11% to 15%, bringing it in line with the rates already applied to other gambling verticals such as casino games and horse racing wagering. Supported by the Vooruit party, the initiative aims to eliminate what Flemish Finance Minister Ben Weyts describes as a discriminatory tax advantage for online gambling.

“It is no longer justifiable that online gambling is fiscally incentivised, while there isn't even social control online,” Weyts told local media.

Regional Disagreement

Under Belgium's current framework, gambling operators pay tax in the region where their servers are physically located. Because these servers can be relocated with relative ease, Weyts is urging both Brussels and Wallonia to adopt the same increase to prevent operators from moving to lower-tax jurisdictions.

However, Brussels Finance Minister Dirk De Smedt has rejected the proposal. He argues that raising the gambling tax now would unfairly alter the conditions for operators, pointing to Brussels’ recent extension of its casino concession. “It is not correct to change the rules of the game now,” De Smedt said. He also noted that many online gambling servers are already situated within Brussels itself.

Underlying Tensions

The disagreement has also exposed friction between the two regions. De Smedt criticised Weyts for advancing the proposal without prior consultation, despite Weyts having previously acknowledged that regional consensus would be necessary for such a change.