The N-VA party and several coastal mayors are pushing a bill to reinstate the deductibility of gambling taxes, stirring debate over fairness and competitiveness in Belgium’s land-based casino sector.
Key Points
The N-VA party and the Middelkerke Mayor proposed a bill to restore casino tax deductibility
Coastal mayors support the bill, citing an uneven playing field with illegal online gambling
The bill prospects are uncertain Belgium’s land-based casino sector is at the centre of a political debate over the fiscal treatment of regional gambling taxes
The N-VA party, together with Middelkerke Mayor Jean-Marie Dedecker, has proposed a bill to reinstate the deductibility of the regional gambling tax for corporate income tax purposes.
The N-VA is currently part of the federal government coalition. Gambling taxation in Belgium is the responsibility of regional authorities. Each of the three regions - Flanders, Wallonia, and Brussels, sets its own tax rates based on the GGR generated by operators.
From 1 January 2024, this regional gambling tax is not deductible as a business expense for corporate tax purposes. This decision was made by the De Croo government in 2023. At that time, the operators of the nine Belgian land-based casinos expressed concerns that this measure could threaten their profitability. Several coastal mayors have publicly endorsed the bill.
The mayors of Middelkerke, Knokke-Heist, Blankenberge, and Ostend jointly wrote a letter to Deputy Prime Minister and Minister-President of Flanders, Jan Jambon, expressing their support. Each of these coastal municipalities has a land-based casino.
Ostend Mayor, John Crombez, stated: "I support the call because there's a completely uneven playing field. While the casino sector, which is exceptionally heavily regulated, is being crushed, the illegal online gambling and casino circuit remains unaffected."
Despite the backing from local authorities, the bill faces uncertain prospects at the federal level. Minister of Consumer Protection Rob Beenders has dismissed the proposal, leaving the future of tax deductibility for Belgium’s casino operators in question.
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