Estonia Passes Bill to Reduce Remote Gambling Tax to 4% by 2029 Amid Political Debate

Lawmakers in Estonia have granted final approval to a bill that will gradually lower the tax rate on remote gambling to 4 per cent by 2029. The legislation cleared its third reading in parliament on Wednesday, passing by a vote of 51-31, with one abstention.

As first reported in October by Gaming Intelligence, the bill reverses an earlier plan to increase the remote gaming tax in Estonia to 7 per cent in 2026. Under the new legislation, the tax rate will gradually fall from its current 6 per cent to 4 per cent over the coming years, in a move designed to position Estonia as a remote gambling ‘paradise’.

The proposal, championed by the Reform Party and Estonia 200, faced stiff opposition from several other political parties and warnings from the Ministry of Finance that the tax cut could reduce state revenues. Speaking ahead of Wednesday’s vote, Anastassia Kovalenko-Kõlvart of the Estonian Centre Party criticised the plan, suggesting it prioritises gambling over other national concerns. “Are there really no more worthy opportunities today than to bring prisoners from abroad and give tax breaks to casino businessmen and through this build such a new image of a European prison and casino centre for our country?” Kovalenko-Kõlvart asked in parliament. “I think that there are many more critical areas in Estonia than gambling and casinos.”

Former foreign affairs minister Urmas Reinsalu echoed concerns about the fiscal impact of the legislation. “The question should rightly arise as to what the motivation is [for the bill]. Culture is being talked about, but in reality, we understand perfectly well, as is also shown in the explanatory memorandum of the Ministry of Finance to the draft law, that on the contrary it will reduce the revenues of the state budget,” Reinsalu said. He added, “In the perspective of the state budget strategy, state revenues will be reduced by tens of millions of euros. Of course, this will benefit someone, whether it is the entrepreneurs who are actually engaged in online casino ownership, or those entrepreneurs who are also engaged in the business of selling online casino licenses.”

Supporters of the bill, however, rejected these accusations and highlighted other measures included in the legislation. They pointed to provisions for increased oversight of gambling licensees, improved regulation of crypto assets, and additional funding for cultural initiatives as part of the broader package. Despite the controversy, the bill’s passage marks a decisive move toward reducing the tax burden on Estonia’s remote gambling sector over the next several years.

By fLEXI tEAM