Estonia is on Course to Cut its Gambling Tax

Estonia is planning to reduce the gambling tax players pay from 6% to 4% in the aim of becoming an iGaming hub in Europe. The Estonian parliament voted 51–31 to approve the decision. The plan originated from ex-basketball player Taniel Tein, now a member of the finance committee. The thinking behind his decision was to attract international operators and modernise gambling regulations, increasing transparency in the rapidly growing casino online 18+ sector.

By lowering taxes, Estonia hopes to bring in more tax revenues from iGaming operators from around the globe. This initiative is intended to bring Estonia up to the level of established gambling hubs such as Malta, Gibraltar, and the Isle of Man. Margus Tsahkna, the Minister of Foreign Affairs, is optimistic that these reforms will benefit the country and attract more operators to the Baltic state.

There has been some opposition from critics who argue that the tax cuts will divert funds from more critical cultural initiatives. The Ministry of Finance has warned that the expected revenue increase may not materialise and could instead lead to a loss of 13 million euros by 2029. Deputy Secretary General Evelyn Liivamägi believes there may also be oversight challenges when managing online gambling operators based outside Estonia.

Despite the criticism, the majority of the Reform Party supports the bill. The decision aligns with broader efforts to transform Estonia’s gambling industry, which has already undergone significant changes in recent years, including Yolo Entertainment’s layoffs and corporate restructuring.