Estonia sets path to lower remote gambling taxes by 2028 

Estonia is set to review its gambling tax framework by 2028, as part of reforms outlined in the newly signed coalition pact between the ruling Reform Party and its majority partner Eesti 200.

The coalition, which has governed since 2023 under Prime Minister Kaja Kallas, will push forward changes from 2025 onwards, aimed at strengthening national security, reforming social protections, and accelerating the transition to climate neutrality.

Gambling reforms are firmly on the fiscal agenda, as the coalition will review its tax agreement of 2024, which reclassified remote gambling levies under the Excise Duty Act and aligned the country’s framework with broader EU compliance standards.

Estonia’s 2024 tax reform saw the Remote Gambling Tax on games of chance increased from 5% to 6% of net bets, alongside similar hikes to the Game of Chance Tournament Tax, Toto Tax, and Lottery Tax — with the latter rising sharply from 18% to 22% on ticket sales.

According to published articles, the government will “initiate the amendment of the Remote Gambling Tax Act in parliament to find additional funding for sports and culture. We will reduce the annual tax rate by 0.5% and reach 4% by the year 2028.”

As such, a ‘dedicated national fund’ will be created to finance major sports infrastructure, using proceeds from online gambling. Projects will be selected in line with priorities set by the Estonian Olympic Committee, ensuring funds are channelled into nationally significant venues.

“Amendments to the Remote Gambling Tax Act will be initiated in parliament to find additional funding for sport and culture,” the agreement states.

A second fund is to be launched to incentivise private-sector co-financing of culture and sport. Here, 20% of new gambling tax revenues will be earmarked for matched donations, following a model where the state covers one-third and corporate sponsors the remaining two-thirds. Only non-profits listed as tax-exempt will qualify.

“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 renewed policy push builds on Prime Minister Kallas’s 2024 intervention, in which her government enacted strict advertising laws to curb the visibility of gambling.

Measures included broad bans on celebrity endorsements, inducements such as “risk-free” bets, and marketing targeted at underage audiences. Enforcement was handed to Estonia’s Consumer Protection and Technical Regulatory Authority (TTJA).

At the start of the year, the Ministry of Finance detailed that it would hear feedback on applying a new tax framework for Estonian gambling. However the Reform Party maintains that it will grant no audience on advertising restrictions. 

Estonia’s liberal coalition is betting that the industry can remain commercially viable while being repositioned as a contributor to public welfare — not just government coffers.