Government Considers Gradual Tax Cuts to Boost Competitiveness
TALLINN – Estonia’s government is tentatively exploring a reduction in remote gambling taxes, a move aimed at enhancing the nation’s economic competitiveness. While discussions are ongoing, the current coalition between the Reform Party and Eesti 200 suggests a tax cut could take effect by 2028.
Proposed Tax Adjustments
Officials have floated the idea of reducing the remote gambling tax by two percentage points in 2028. However, instead of waiting for a single large cut, the government is considering a gradual decrease of 0.5% annually, which would bring the current tax rate from 6% down to 4% over four years.
New Fund Allocations
Alongside tax adjustments, the government plans to restructure industry revenue by establishing two dedicated funds:
- A sports infrastructure fund, designed to enhance local athletic facilities.
- A cultural and sports betting initiative fund, supporting responsible gaming programs.
Gambling Policy Reforms & Consumer Protections
Despite the potential tax reduction, Estonia’s government remains firm on preserving recent regulatory measures. In 2024, officials enacted restrictions on celebrity endorsements, preventing gambling normalization among at-risk populations. Additionally, authorities cracked down on:
- Misleading “risk-free” promotional language used by gambling operators.
- Advertisements targeting minors, reinforcing consumer protections.
As tax reform discussions progress, Estonia continues to balance economic growth and responsible gambling policies. The government aims to support industry sustainability while ensuring consumer safety remains a top priority.