Evaluating the impact of tax rates on channelling online gambling toward the regulated markets in Europe

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Author(s): Marionneau, Virve ; Matteucci, Nicola ; Vieira Lima, Sabrina ; Nikkinen, Janne ; Selin, Jani

Journal: Harm Reduction Journal

Year Published: 2025

Date Added: August 27, 2025

This study examined the link between channelling rates and tax rates across 29 European countries. The researchers used data on tax rates, channelling rates, and controls such as policies on blocking offshore websites. Overall, the findings show that there are different approaches to gambling taxation across the countries. There are also different approaches to gambling taxation across product groups. Channelling rates increased in Europe from 2015 to 2021. Overall, there was a decrease in offshore market shares. The researchers noted that this decrease might be mostly due to the growth of the onshore market between 2015 and 2021. Higher taxation rates were not linked to lower channeling rates within Europe. The results suggest that higher tax rates may sometimes be associated with more effective channelling. The researchers conclude that higher taxation is not likely to push gambling toward offshore markets.

Citation: Marionneau, V., Matteucci, N., Vieira Lima, S., Nikkinen, J., & Selin, J. (2025). Channeling and taxation in European online gambling markets: Evolution and policy implications. Harm Reduction Journal, 22, 1. https://doi.org/10.1186/s12954-024-01145-0

Article DOI: https://doi.org/10.1186/s12954-024-01145-0

Keywords: harm reduction ; illegal gambling ; offshore gambling operators ; regulation ; taxation

Topics: Gambling Resources ; Information for Operators ; Information for Policy Makers ; Information for Treatment Providers ; Prevention

Conceptual Framework Factors: Environment - Social and Economic Impacts ; Environment - Economics ; Gambling Environment ; Social - Deviance ; Environment - Public Policy

Study Design: Secondary Data Analysis

Geographic Coverage: Europe

Study Population: Data on tax rates, market shares of onshore and offshore online casino gambling and betting, and legal provisions for payment or blocking from 29 European countries (including the UK) in 2018 and 2021.

Sampling Procedure: Secondary data were collected from Vixio Gambling Compliance and H2 Gambling Capital that track regulatory and market developments in the gambling industry.

Study Funding:

Virve Marionneau, Janne Nikkinen, and Jani Selin received funding from the Finnish Ministry of Social Affairs and Health. Virve Marionneau and Janne Nikkinen also received funding from the Academy of Finland. Open access funding was provided by the Helsinki University Library.