Ministry of Finance puts brakes on plans to make Estonia a global igaming hub
The ministry has insisted that foreign-facing gambling operators would have to be strongly vetted.
Estonia. The Ministry of Finance has cast doubt on Estonia’s coalition government’s plans to reduce taxes on gambling in a bid to make the country an igaming hub to rival Malta.
The Reform Party and Eesti 200 agreed to gradually reduce Estonian Remote Gambling Tax by 0.5 per cent a year, aiming for a final rate of 4 per cent by 2028. The move would revert last year’s gambling tax revision, which hiked Remote Gambling Tax from 5 to 6 per cent on net bets.
Reform MP Madis Timpson, chair of the Legal Affairs Committee had claimed that “a remote gambling paradise is indeed what we could become,” noting the current position of Malta. “Those people who are playing somewhere, I don’t know, in France, in Spain; their profits would come to us,” he said.
However, the Ministry of Finance has played down such plans, pledging to evaluate all economic risks before it gives its OK to any gambling tax cuts. Finance minister Jürgen Ligi highlighted the political risk of tax breaks for gambling said reforms must strike a balance between competitiveness and accountability.
“We cannot simply lower tax rates and expect investment to follow. Our credibility depends on supervision, on traceable flows of money, and on cooperation with international partners,” he said.
The move comes after a report from the Financial Intelligence Unit (FIU) identified a growing number of anti–money laundering (AML) incidents linked to gambling operators serving cross-border markets.
Treasury deputy Evelyn Liivamägi insisted that the Ministry would not condone “any tax relief that weakens supervision or increases exposure to financial crimes.”
“Estonia’s goal is not to become a soft target for unregulated capital. Tax changes can only be justified if we are certain that operators are fully vetted – their licences, IT systems, payments, and compliance records must meet the highest standards,” she said.
Such vetting could slow down the process of Estonia’s growth as a potential igaming hub. Foreign-facing operators would also face strict licensing audits and reporting obligations, Liivamägi said.
