The Estonian coalition government has unveiled plans to open Estonia’s gambling market to more foreign online casinos and bookmakers. As part of this initiative, the government intends to reduce the remote gambling tax – currently at 6% – down to 4% by 2028.
This significant tax cut is designed to make Estonia’s gambling sector more attractive to international gambling operators, boosting investment and organized gambling activity within the country. Officials project that the move will substantially increase tax takings from online gambling activities, as more companies base their operations in Estonia’s favorable environment.
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Tax Cuts Aimed at Attracting Gambling Operators
Under the new plan, Estonia’s gambling tax on online platforms (known as remote gambling tax) will be gradually lowered from the current 6% to 4% over the next few years. This reversed course comes after a recent period where taxes were actually raised – in 2024 the rate was hiked from 5% to 6% – but now the focus is on growth over higher rates. Government leaders argue that a lower tax burden will entice more gambling companies to register in Estonia and apply for an Estonian online gaming license.
Lower Taxes Set to Boost Estonia’s Gambling Revenue
Government noted that cutting the tax to 4% by 2028 will likely increase the number of licenses issued in Estonia. In turn, each new licensed gambling operator means additional tax revenue flowing into state coffers. According to the Ministry of Finance, Estonia currently collects around €22 million per year in remote gambling taxes; with the new policy, annual revenues could reach €50–60 million within a few years. In short, the government expects a larger slice of the gambling industry can more than offset the lower tax rate by significantly expanding the volume of licensed gambling activities.
Opening the Market to Foreign Online Casinos
The reform is explicitly aimed at international gambling businesses. Estonia’s leadership has made it clear they want to invite foreign online casinos and sports bookmakers to set up shop in the country. By creating a more business-friendly climate – low taxes and simplified requirements – the coalition hopes to position Estonia as an appealing base for Europe’s online gambling industry. In the past, overseas operators could serve Estonian players only if they obtained a local license and paid taxes, which limited some participation.
Win-Win Strategy: Estonia Invites Foreign Gambling Businesses
Now, officials are actively encouraging reputable gambling operators abroad to seek an Estonian gambling license and operate under Estonia’s jurisdiction. The expected influx of new entrants is seen as a win-win: operators get a competitive tax regime and access to the EU market, while Estonia gains jobs and tax revenue from a thriving gambling sector. Crucially, this strategy aims to boost organized gambling (i.e. regulated, legal gambling) and draw activity away from unlicensed offshore sites. By expanding online gambling activities through licensed channels, the government can better oversee the market and ensure it grows responsibly under Estonian rules.
Streamlined Licensing and Strong Regulatory Standards
Alongside tax cuts, the government plans to simplify licensing requirements to lower barriers for new operators. Currently, Estonia has a rigorous two-step licensing process: a company must obtain an activity license for organizing gambling and then separate operating permits for each gambling product or venue. All licensing and supervision is handled by the national regulator – often referred to as the Estonian casino regulator, which is the Estonian Tax and Customs Board.
Under the existing legislative framework (the Gambling Act and Gambling Tax Act), any operator – local or foreign – must meet Estonia’s standards and be approved by the regulator before offering gambling services. There are operational standards in place covering game fairness, anti-money-laundering measures and responsible gambling practices. For example, companies must implement age limits (generally 21+ for casinos) and honor the national self-exclusion register to safeguard players from problem gambling.
Less Red Tape, Same High Standards for Estonia’s Gambling Sector
Officials indicate that streamlining the license application and approval process will make it faster and less bureaucratic for reputable companies to get up and running. However, the high standards for integrity and player protection will remain. Foreign operators will still need to establish a local entity and pass compliance checks to obtain an Estonian gambling license – there are no shortcuts around regulatory scrutiny. Notably, an existing license from another EU country does not automatically allow operation in Estonia, so interested gambling companies must go through Estonia’s process.
The government’s goal is to maintain a robust regulatory environment with clear rules while removing unnecessary red tape. This balanced approach aims to safeguard players and the public interest even as the market grows. By upholding reliable oversight, Estonia can welcome innovation and new gambling products (from online slots to sports betting) without compromising on consumer protection.
Outlook for Estonia’s Gambling Sector
The proposed tax reduction and licensing reforms signal that Estonia’s gambling sector is entering a growth-oriented phase. Industry observers say the country is on track to become a regional hub for online gambling businesses within Europe. In the competitive EU gambling landscape, Estonia is carving out a niche as a jurisdiction with favorable operational conditions for operators – a low-tax, well-regulated environment that encourages investment. The increased influx of licensed operators should broaden the variety of gambling products and services available to consumers, from online casinos to sportsbook platforms, all under Estonian oversight. This could mean more innovation and diversity in the market, as global brands and startups alike bring their offerings to Estonia.
Responsible Growth Strategy in Gambling Industry
Crucially, the expansion of online gambling activities under local licenses is expected to boost state revenues and create economic benefits, without the need to impose stricter regulations on players. The Ministry of Finance has indicated it does not plan new heavy restrictions; instead, it aims to maintain a healthy balance between growth and responsibility. The emphasis remains on organized gambling – ensuring that gambling activity is channeled through licensed, controlled operators rather than unregulated channels. By doing so, Estonia can safeguard players with enforceable rules on advertising, age limits, and support for at-risk gamblers, all while allowing the gambling business to flourish.
Will Estonia Become Europe’s Next Gambling Hub?
In summary, Estonia’s government is betting on a strategy of tax incentives and regulatory efficiency to draw in gambling companies from across Europe’s gambling industry. If successful, the country could see a surge of new licenses and a jump in tax revenue to the tune of tens of millions of euros. The coming years will reveal whether this bold approach turns Estonia into one of the go-to destinations in the EU gambling market for online casino and betting operators. For now, the message to the gambling industry is clear: Estonia is open for business under fair rules, inviting operators to be part of a growing, well-regulated gambling sector in the digital age.
