Estonia may lower gambling tax
The government plans a series of fiscal reforms by 2028.
Estonia.- A coalition agreement between the ruling Reform Party and majority partner Eesti 200 has set the scene for another reform of gambling tax in Estonia as part of fiscal reforms. The changes could see remote gambling tax cut by two points by 2028.
The coalition has been in power since 2023 led by prime minister Kaja Kallas. Fiscal reforms outlined as an upcoming priority will include revisiting last year’s gambling tax revision, which hiked Remote Gambling Tax from 5 to 6 per cent on net bets.
That revision, which reclassified remote gambling taxes under the Excise Duty Act to align with European Union standards, also introduced similar rises for the Gambling Tournament Tax and Toto Tax, while Lottery Tax on ticket sales was hiked from 18 to 22 per cent.
The government now plans to propose amendments to the Remote Gambling Tax Act that could gradually reduce the tax rate by 0.5 points per year to 4 per cent by 2028 in a bid to balance taxation and industry competitiveness.
The plan is to also reorganise how tax revenue is distributed with the creation of a new national fund to finance major sports infrastructure projects. This would be overseen by the Estonian Olympic Committee. A separate fund would be created to encourage private-sector co-financing of cultural and sporting initiatives. This would see 20 per cent of gambling tax revenue allocated to matched donations, with funding structured so that the state contributes one-third while corporate sponsors provide the remaining two-thirds. Only tax-exempt non-profit organisations would be eligible to benefit.
Other reforms in 2024 included bans on celebrity endorsements for gambling, promotions that cite “risk-free” bets and marketing campaigns targeting minors. Enforcement duties were given to Estonia’s Consumer Protection and Technical Regulatory Authority (TTJA).
In March, the Ministry of Finance announced plans to amend articles in Estonia’s Gambling Act of 2008 but ruled out stricter regulations as the government seeks to attract industry players.
