Estonia May Agree to Reduce Remote Gambling Tax

Estonia is moving in the opposite direction – towards slashing its remote gambling tax, although nothing is certain. Yet, the current coalition between the Reform Party and Eesti 200 could suggest that this will happen, but not before 2028.

Estonia Does the Unthinkable – Considers Lowering Gambling Tax

The partners have tentatively suggested that the gambling tax may be reduced by two points in 2028, which still leaves a lot of room for what could happen next. The coalition came into power in 2023 and has a long way to go, but generally speaking, the government has been keen to slash taxes and boost local competitiveness.

Kaja Kallas, the prime minister, has also been keen on introducing the changes. Rather than wait for 2028 to enact them, however, a gradual reduction has been proposed by 0.5% every year so that the current remote gambling tax could be slashed from 6% to 4%.

The changes to the way the gambling industry is taxed will also come with a reorganization of the proceedings from the industry, and specifically the creation of two funds – one that will back sports infrastructure projects and another one that will focus on cultural and sports betting initiatives.

Estonian Government Happy with Reforms of Gambling So Far

However, other than tinkering with the tax and distribution of proceeds, the government is less keen to reverse any of the previous changes that it believes are for the better of industry and consumers.

In 2024, the government passed a prohibition on celebrity endorsements, effectively ensuring that popular personalities would not normalize gambling in at-risk and vulnerable groups. The government also moved in force against the so-called “risk-free” promotional language and also clamped down on advertising that was seen as targeting children.