Greece Defends Higher Tax Rates on Online Casino Winnings Despite Industry Concerns

The Greek government has reaffirmed its decision to increase taxation on online casino winnings, maintaining that the higher rates will generate additional public revenue and help finance measures supporting households and businesses. The increase, which took effect on 1 July 2026, has faced criticism from parts of the gambling industry over its potential impact on the regulated market and the risk of players moving to unlicensed operators.

Under the revised framework, online casino winnings between €100 and €500 are now taxed at 20%, compared with the previous rate of 15%. Winnings exceeding €500 are subject to a 30% tax, up from 20%, while winnings of up to €100 remain exempt. The changes apply to online casino-style games, including slots and poker, rather than sports betting, which continues to be governed by separate tax arrangements.

Finance Minister Kyriakos Pierrakakis first announced the increase on 23 March 2026, describing it as a measure intended to increase the contribution of the online gambling sector to public finances. The government estimated that the changes would generate approximately €100 million in additional annual revenue. Pierrakakis has continued to defend the policy, arguing that the proceeds will support public services and measures addressing rising living costs.

Deputy Finance Minister Thanos Petralias has also rejected concerns that higher taxation could drive customers towards unlicensed gambling websites. He stated that the government had considered the potential impact on player behaviour and demand when developing the policy, including reviewing operator data and taking account of the sensitivity of demand to changes in taxation.

The government argues that the rapid expansion of online casino and poker activity justifies a greater contribution from the sector to the state budget. It also maintains that the tax increase forms part of a wider approach that combines revenue collection with stronger enforcement against illegal gambling.

Figures published in October indicate that taxes withheld from gambling winnings reached €369 million between January and August 2026, representing a 27.3% increase compared with the €290 million collected during the corresponding period in 2025. Over the same eight-month period, total gross gaming revenue (GGR) increased by 4.2% to €2.06 billion, while state participation receipts from gambling operators rose by 7.9% to €484.5 million.

The figures reflect developments across the wider gambling market and do not isolate the financial contribution of the player tax increase introduced in July. Consequently, the increase in tax receipts cannot be attributed entirely to the revised rates. Changes in gambling activity, winnings and the overall market may also have influenced the results.

The government's position is closely connected to its broader efforts to strengthen the regulated gambling market and address illegal online activity. The Hellenic Gaming Commission (EEEP) has been assigned an expanded enforcement role, including enhanced website-blocking capabilities, investigative powers and sanctions against individuals and businesses involved in facilitating unlicensed gambling.

An October recruitment initiative sought 40 additional personnel through secondments, including seven IT specialists, to reinforce the regulator's inspection and enforcement capabilities. The additional expertise is intended to support supervision of an increasingly digital market and improve the identification and investigation of illegal gambling operations.

The enforcement framework also includes substantial penalties. Depending on the offence, administrative fines can reach €2 million per infringement, while specified illegal gambling offences carry prison sentences of at least ten years. Businesses, individuals, affiliates, influencers and digital advertising networks may also face sanctions where they promote or facilitate illegal gambling. These measures form part of the legislative framework introduced through Law 5313/2026.

The government has presented stronger enforcement as an important safeguard against the possibility that higher taxation could encourage customers to use unlicensed platforms. The authorities have argued that the tax policy should be considered alongside measures intended to restrict access to illegal operators and impose consequences on those who facilitate their activities.

The debate nevertheless highlights a difficult regulatory balance. Higher taxation may increase the state's revenue from the licensed market, but its longer-term effect will also depend on how operators and consumers respond. If the cost of participation in the regulated market becomes less attractive compared with unlicensed alternatives, the authorities may face additional challenges in maintaining market participation and protecting consumers.

For licensed operators, the changes increase the tax burden borne by players and may influence product competitiveness, promotional strategies and customer retention. Operators must also ensure that their systems correctly calculate and withhold the applicable tax on winnings, taking account of the relevant game category and the thresholds established under Greek legislation.

The government's immediate position remains that the additional revenue is justified and that the risk of migration to illegal platforms has been considered. Whether the revised taxation framework can achieve its revenue objectives without materially weakening the regulated market will depend on developments in player behaviour, operator performance and the effectiveness of the EEEP's enforcement measures.

By fLEXI tEAM