Estonia is positioning itself as a potential European iGaming hub with a proposed reduction in remote gambling taxes. The draft legislation, spearheaded by Reform Party MP Madis Timpson, suggests gradually lowering the tax by 0.5 percentage points annually until it reaches 4% by 2029. This represents a significant policy reversal from prior government plans to increase the tax to 7% next year.
The initiative aims to attract foreign operators currently registered in Malta and other jurisdictions, providing Estonia with an opportunity to strengthen its position in the competitive European iGaming market. Supporters argue that the tax cuts could boost investment, encourage market growth, and generate funds for sports and cultural projects, citing potential benefits for local communities.
However, the proposal has met resistance. Critics, including Center Party MP Andrei Korobeinik, caution that the measure may not increase government revenue as expected. They stress that operators value stability and regulatory certainty over marginal tax reductions. The discussion around the bill is also expected to enhance transparency in funding allocations for public projects, which has been a point of debate in recent years.
The proposal comes amid broader turbulence in Estonia’s gambling sector, with Yolo Entertainment recently announcing that 280 jobs are at risk due to company restructuring and consolidation under a single regulated brand. The bill is now under review by the Riigikogu’s finance committee, where it will face scrutiny from opposition MPs before any vote.
If enacted, the legislation could mark a pivotal shift for Estonia’s gaming industry, potentially transforming it into a European “remote gambling paradise” and attracting both operators and investors seeking favorable tax and regulatory conditions. This move may redefine the country’s competitive standing in Europe’s online gambling landscape.
