Estonian gambling tax cut passed by parliament
The phased reduction in gambling tax in Estonia overcame opposition amid Eesti 200 envisions attracting international operators to compete with Malta.
Estonia.- While many countries in Europe are raising gambling tax, Estonia is going the other way. The country’s parliament, the Riigikogu, this week approved a phased online gambling tax reduction in Estonia.
The legislation outlines a phased reduction in Estonian Remote Gambling Tax by 0.5 per cent a year, aiming for a final rate of 4 per cent by 2028. That revert last year’s gambling tax revision, which hiked Remote Gambling Tax from 5 to 6 per cent on net bets.
The measure, proposed by Eesti 200 MP and former basketball player Tanel Tein, had faced criticism, but Riigikogu finally voted 51-31 in favour. The stated objective of the legislation is to modernise gambling rules, increase transparency and, ultimately, boost tax revenue by attracting more international online casino operators to Estonia.
Tein had argued that physical casinos wouldn’t open in Estonia, so the aim was to attract foreign capital, and that the move could position Estonia to compete with Malta as a hub for igaming operators. He also argued that the move would help fund his campaign promise of a major new sports arena in Estonia
Some Reform MPs had raised concerns that it could reduce funding for culture and increase risks in oversight. The coalition government’s own Ministry of Finance had been critical of the proposal, warning that the tax cut would cost the state budget if revenue projections fall short. It estimates that gambling tax receipts could fall by €6m in 2026, €8m in 2027, €10m in 2028 and €13m in 2029.
Deputy secretary general Evelyn Liivamägi said regulators already struggled to supervise remote gambling operators, most of which have their operations, servers and executives abroad.
Former finance minister and MP Mart Võrklaev of Reform eventually voted in favour of the proposal despite previously having argued against it. He told the state media service ERR after this week’s vote that he still sees it as a “very bad piece of legislation” but said: “It’s no secret the coalition has been held hostage over it: the threat has been that if this bill doesn’t pass, then the state budget won’t get the votes and the coalition will fall.”
He added: “This bill would have passed with or without my vote. However, I saw a need to make savings in the state budget. I proposed cutting €9m from the maritime transport subsidy for one year – that’s over €40m across four years. That was my compromise: if we’re going to move forward with this bill anyway, then let’s at least save money in the budget.”
Several countries in Western Europe have increased gambling taxes in recent years. Sweden rose its tax rate last year, while France and the Netherlands followed suit this year, and the UK last week announced a rise in Remote Gaming Duty for online casino operators to 40 per cent from April 2026.
Other countries in Europe may now want to watch Estonia to see how Tein’s plan plays out. It’s been noted that the rise in gambling tax in the Netherlands this year actually led to a decline in tax revenue. The government still plans to introduce a second rise in 2026. It will be interesting to see if Tein is correct and that Estonia can raise more tax revenue by reducing gambling tax.
