Estonia Passes Gambling Tax Cut as Officials Eye iGaming Growth - iGamingToday.com



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Estonia Passes Gambling Tax Cut as Officials Eye iGaming Growth


Estonia’s parliament has signed off on a phased reduction of the online gambling tax in a move to modernize the country’s gaming framework and attract international operators.

According to public broadcasterEesti Rahvusringhääling,the Riigikogu backed the Eesti 200 proposal on Wednesday with a 51–31 vote, despite warnings that the change could weaken oversight and reduce money available for culture funding.

The new proposal lowers the tax rate from 6% to 4% over two years. It follows anearlier decision in October, when lawmakers approved amendments to the Gambling Tax Act. That vote marked a sharp turn from earlier plans to raise the rate to 7% in 2026.

MP Tanel Tein, a former basketball player and member of the Finance Committee, introduced the bill, arguing that Estonia should focus on bringing in foreign tax revenue rather than expecting physical casinos to open locally.

“We want to bring global accounting to Estonia,” he said, adding that the updated law creates “a concrete funding model” that also supports his campaign pledge to build a new arena for the country.

Multiple government officials against bill

The gambling tax cut has not gone without criticism inside Estonia’s government.

Several members of the Reform Party voiced concerns before the vote, questioning whether the measure would truly benefit citizens. Former finance minister Mart Võrklaev argued that the plan should either be delayed or abandoned, saying it offered little help to ordinary people. Despite his reservations, he ultimately cast his vote in favor.

Finance Committee chair Annely Akkermann also expressed doubts but joined colleagues in backing the measure. Liina Kersna stood apart as the only abstention, explaining that while she supported the broader aim of modernizing gambling rules, she could not overlook the impact on cultural funding.“According to official forecasts, €13 million will be pulled from culture over the next three years,”she said.

The Ministry of Finance has been more direct in its criticism. Officials warned that the reduction could drain the state budget if revenue projections fail, estimating losses €6 million in 2026, rising to €13 million by 2029.

Deputy secretary generalEvelyn Liivamägiadded that regulators already faced difficulties supervising remote operators whose executives, servers, and customers are based abroad.“It’s difficult to exercise oversight [abroad] now, and it will remain difficult going forward,”she noted.

Supporters of the bill, including its sponsor Tanel Tein, dismissed those warnings. Tein argued that the forecasts were flawed and insisted that culture and sports funding would not decline, pointing to comparisons with the Foresight Center to back his claim.

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