Estonia Cuts Online Gambling Tax to 4% by 2028
Estonia is bucking the broader European trend of raising gambling taxes, as the Riigikogu approved a plan this Wednesday to gradually lower the nation’s online gambling levy.
Under the new legislation, the Estonian Remote Gambling Tax will decrease by 0.5% each year, reaching 4% by 2028. This reverses last year’s increase, which had raised the rate from 5% to 6% on net bets.
The bill, proposed by former basketball star and Eesti 200 MP Tanel Tein, passed 51-31 despite opposition. Its stated objectives are to modernize gambling regulations, increase transparency and attract international online casino operators, positioning Estonia as a potential rival to Malta for online gambling investment. Tein also noted that the tax reduction would help fund his pledge to construct a new sports arena.
Some MPs from the Reform Party expressed concerns that the move could reduce oversight and limit cultural funding. The Ministry of Finance warned that if projected revenue targets are not met, the tax cut could negatively affect the state budget. Forecasts anticipate a decline in gambling tax receipts by €6 million in 2026, €8 million in 2027, €10 million in 2028, and €13 million in 2029.
Deputy Secretary General Evelyn Liivamägi highlighted challenges regulators face in monitoring remote gambling operators, many of which have executives, servers and operations based overseas.
Former finance minister and Reform MP Mart Võrklaev, initially opposed to the proposal, ultimately voted in favour, describing it as “a very bad piece of legislation” but noting that the bill’s passage was crucial for coalition stability. To mitigate budget impact, Võrklaev suggested reducing €9 million from the maritime transport subsidy for one year, totaling over €40 million across four years.
The decision stands in contrast to recent actions by other Western European nations, which have increased gambling taxes. The UK recently announced a jump in Remote Gaming Duty to 40% from April 2026, while Sweden, France and the Netherlands also raised rates in the past two years. Interestingly, the Netherlands’ recent increase saw tax revenue decline, making Estonia’s experiment in lowering the levy one to watch closely.
