Estonia to Overhaul Gambling Tax System by 2028
Estonia will revise its gambling tax regime by 2028 as part of a broader fiscal reform outlined in the new coalition agreement between the Reform Party and Eesti 200. The plan includes a gradual reduction in the remote gambling tax rate and the creation of dedicated funds for sport and cultural development, using proceeds from online gaming.
Gradual Tax Cut and New Allocation Model
Under the coalition pact signed in 2025, Estonia’s government plans to revisit the Remote Gambling Tax Act, which was updated the year before to increase various levies. The 2024 reform had raised the Remote Gambling Tax on games of chance from 5% to 6% of net bets, with similar hikes applied to the Game of Chance Tournament Tax, Toto Tax, and Lottery Tax — the latter rising significantly from 18% to 22%.
By contrast, the new roadmap will see tax rates reduced in stages from 2025 onward.
“We will reduce the annual tax rate by 0.5% and reach 4% by the year 2028,” states the coalition agreement.”
This adjustment will be accompanied by a redistribution strategy. A new national fund will be established to finance key sports infrastructure projects, using revenue generated from online gambling. Priorities for investment will be set by the Estonian Olympic Committee to ensure alignment with broader public goals.
“Amendments to the Remote Gambling Tax Act will be initiated in parliament to find additional funding for sport and culture,” the agreement states.
State-Private Co-Financing Scheme Introduced
In addition to the sports fund, the government will launch a second initiative aimed at leveraging private capital for the cultural and sports sectors. This co-financing mechanism will earmark 20% of new gambling tax revenues for a matched-donations fund.
“To attract private funding for the cultural and sports sectors, we will create a private fundraising fund by amending the Gambling Tax Act and directing 20% of the additional revenue into this new fund.
“We will use a principle where one-third of financial contributions come from the state and two-thirds from companies, in the case of donations. Support will be based on organisations listed as tax-exempt non-profits and foundations.”
This model is designed to encourage corporate involvement while ensuring that support is targeted toward verified charitable and cultural bodies.