A ruling coalition in Estonia is actively promoting plans to reduce taxes on gaming incomes. This reform is being positioned as a long-term strategy to attract foreign investment and strengthen the country’s status as a regional tech centre.
Essence of the New Initiative
The program was developed with global trends in mind. The government carefully analysed the current situation in most EU states, where business fees are rising. Radically different economic approaches will allow Estonia to compete with top gambling jurisdictions such as Malta, the UK, or the Isle of Man.
The country’s overall political course is enshrined in the Coalition Pact for 2023−2028. A special committee, comprising Eesti 200's and the Reform Party’s representatives, is working on the legal changes. The starting point for the transformation of Estonia’s economic sector was the agreement published in June.
The document outlines:
- measures to strengthen national security;
- long-term goals for the financial development;
- directions for modernising the social welfare model;
- plans for accelerating the transition to climate neutrality.
As part of this fiscal transformation, the government intends to gradually lower the tax on remote gaming by 0.5% per year until the final figure drops to 4% in 2028.
Expectations for the Project
Madis Timpson, the Reform Party’s lawmaker and Riigikogu's Chairman, is overseeing the development of the new bill. He is one of the most consistent advocates of reducing the charge rate for gambling businesses.
The MP believes the government’s initiative will help attract additional investment to Estonia and increase its attractiveness for international operators. He notes that the changes are linked not only to economics but also to cultural and social objectives. Specifically, the Coalition Pact envisages the creation of a local sports infrastructure fund in partnership with the state’s Olympic Committee and private investors.
A portion of the gaming sector’s tax revenues will also be directed to a matched-donation system. It would be another pool intended to receive 20% of the new contributions.
Criticism and the Opposition’s Opinion
Before the reform is finally adopted, the Riigikogu committee will have to submit a separate project on gambling fees since these amendments cannot be included in the state budget. Lawmakers consider the step important for ensuring transparency and oversight of revenue flows.
Despite the potential economic benefits, the proposal to reduce the tax rate has drawn criticism from the opposition, particularly the Center Party. The Finance Committee’s Deputy Chair expressed doubt that these cuts would lead to the expected influx of investment. In Andrei Korobeinik's opinion, industry representatives value predictability and economic stability more than minor charge breaks.
At the same time, the coalition remains committed to the strategy of increasing Estonia’s competitiveness and attracting foreign sponsors.
The country’s Prime Minister took a balanced position, reiterating that, despite the proposed fiscal cuts for businesses, the government continues to implement enhanced consumer protection measures.
Kaja Kallas reminded parties that starting in 2024, bans have been introduced on ads with:
- celebrities;
- «risk-free» bets;
- a focus on minors.
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