Estonian coalition MPs are advancing a bill to slash remote gambling tax, seeking to turn the country into a European iGaming hub.
Proponents say the plan could make Estonia a “remote gambling paradise” and attract operators currently based in Malta.
The draft legislation, spearheaded by Reform Party MP and Legal Affairs Committee chair Madis Timpson (pictured), proposes gradually reducing the gambling tax by 0.5 percentage points each year, reaching 4% by 2029.
This represents a sharp reversal from the government’s previous plan to raise the tax to 7% next year.
The idea is that foreign firms currently registered elsewhere, such as Malta, would “come to Estonia,” ERR News quoted Timpson.
Timpson also highlighted the potential social benefits of the measure, noting that increased revenue could fund sports and cultural initiatives.
“Every cent we manage to obtain to fund this large hall is a welcome deed for athletes and cultural figures,” he said, referring to long-discussed sports infrastructure projects.
Revenue boost or risk?
However, not all MPs are convinced. Center Party MP Andrei Korobeinik, deputy chair of the Riigikogu’s finance committee, warned the tax cut could reduce, rather than increase, government revenue.
“The bill’s initiators relied on lobbyists’ promises that lowering the tax would immediately attract operators,” Korobeinik said.
“But no analysis has been carried out, and experience in other countries shows such a small drop does not significantly impact the market. For these companies, stability and certainty matter more.”
Korobeinik added that debate around the bill could at least increase transparency regarding the funding of sports and cultural projects, which he said has been inconsistent in recent years.
The substantive provisions of Estonia’s national Gambling Act have not been amended for over 15 years.
Advocates of the bill argue that cutting the remote gambling tax could boost revenues even with a lower rate, while also encouraging foreign investment in Estonia’s gaming sector.
Industry turbulence
The proposal comes amid broader turbulence in Estonia’s gambling industry.
Last week, Yolo Entertainment announced that 280 Estonia-based jobs are at risk as part of a major restructuring, consolidating operations under a single regulated brand, Yolo.com, and expanding into regulated markets in the Middle East, Canada, and Northern Europe.
The Riigikogu’s finance committee has been designated the lead body for the bill, which is expected to face scrutiny from opposition MPs before any vote.
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