Estonia Approves Gambling Tax Changes
The Estonian government has approved amendments to the Gambling Tax Act aimed at improving long-term funding for sports and culture. While the bill has passed its first reading in the Riigikogu, the decision to lower the online gambling tax rate has triggered strong criticism from the Ministry of Finance, the opposition, and members of the coalition.
Approved Plan to Strengthen Public Funding
Under the adopted reform, Estonia intends to increase overall gambling tax revenue from around €22 million to €30 million by 2028. All future gains would be allocated directly to cultural and sports initiatives, creating a more predictable financial structure for both sectors.
A central element of the reform is a gradual reduction of the remote gambling tax rate from 6 percent to 4 percent. The decrease would be implemented step by step, with each stage dependent on revenue performance reaching predefined levels.
Financial Risks and Questioned Projections
The Ministry of Finance has warned that lowering the tax rate may not generate the expected increase in operators entering the market. According to current forecasts, the state could instead face revenue losses over the next several years. Critics argue that assumptions about strong industry expansion are not sufficiently substantiated by recent market trends.
Although the bill was introduced by MPs from the Reform Party and Eesti 200, it has faced opposition within the ruling parties. Some lawmakers question whether the reform favors narrow business interests. They argue that the benefits remain uncertain, while the risk of reduced state income is significant.
Safeguards Against Funding Shortfalls
Government leaders have pledged that funding for culture and sports will not be jeopardized. Should the expected increase in revenue fail to materialize, the state would redirect resources from other budget areas to avoid financial gaps. In parallel, measures are being prepared to enhance supervision of licensed operators, reflecting concerns over money-laundering risks in the sector.
Despite the approval by the government and progress in the Riigikogu, the proposal remains under heavy debate. Further discussions and amendments are expected before lawmakers cast their final vote on Estonia’s future online gambling tax model.