The Estonian Parliament, Riigikogu, has approved a reduction in the country’s gambling tax from 6% to 4%, reflecting a deliberate shift in national policy aimed at attracting greater international investment in the online gambling sector. The reform passed with a vote of 51–31 and reverses previous government plans to raise the tax to 7%. 

Supporters of the changes, led by MP and Finance Committee member Tanel Tein, stated that the goal is to modernize the regulatory framework for gambling, enhance transparency, and ultimately increase long-term tax revenue by bringing more international operators into the market.

Tein emphasized Estonia’s aim to adopt international accounting standards and establish itself as a competitive European hub for online gaming. This move aligns with broader political ambitions to compete with well-established jurisdictions such as Malta, Gibraltar, and the Isle of Man.

At the same time, the Ministry of Finance expressed serious concerns, warning that the tax cut could significantly impact state revenues if the projected industry growth does not materialize. Estimates indicate the government could lose up to €13 million ($14.2 million) in tax revenue by 2029.

Concerns have also been raised regarding industry oversight, particularly in terms of monitoring international operators whose operations are often based outside Estonia. The timing of the reform coincides with several challenges in the Estonian gaming sector, including recent restructuring and large-scale layoffs announced by Yolo Entertainment as it consolidates operations under a single brand and expands into new markets.

As Estonia seeks to become a leading European center for online gambling, the country is taking a high-stakes decision, trying to balance market competitiveness with regulatory and fiscal responsibilities.

Source

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