Estonia will lower its tax to attract more international iGaming operators

The Estonian parliament has approved a plan to gradually reduce the tax on online gambling. By 2028, the rate is set to drop from 6% to 4%. The initiative passed with 51 votes in favor and 31 against. The government hopes the change will attract more international iGaming operators and boost overall tax revenue.

The reform was initiated by Tanel Tein, a member of the Riigikogu Finance Committee and former professional basketball player. He believes the new rules will modernize the legislation, bring more transparency to regulation, and draw international companies to the market.

The country also plans to adopt global financial reporting standards so Estonia can compete with major jurisdictions like Malta and Gibraltar.

The government previously introduced a phased reduction plan. Although the tax will be lower, Foreign Minister Margus Tsahkna argued that the budget will ultimately benefit, as more companies are expected to enter the market.

Not everyone agrees. Some critics say a lower tax rate could reduce funding for cultural projects. The Ministry of Finance has warned that if new operators do not offset the difference, Estonia may lose up to €13 million by 2029.

In addition, Deputy Secretary-General of the Ministry of Finance Evelin Liivamägi noted that overseeing operators based abroad will not be easy.