Estonia Plans Tax Cuts to Attract Investment in the iGaming Sector

Coalition’s Strategic Framework

The initiative was developed with international economic trends in mind. The government reviewed policies across EU member states, where business fees continue to rise. By applying a different fiscal approach, Estonia aims to compete with established centres such as Malta, the United Kingdom, and the Isle of Man.

The general direction is enshrined in the Coalition Pact for 2023–2028. A special committee comprising representatives of Eesti 200 and the Reform Party is working on the necessary legal updates. The agreement, published in June, lays the groundwork for a broader economic transformation.

The document highlights key objectives, such as:

• strengthening national safety;
• modernising the social welfare model;
• supporting sustainable economic growth;
• accelerating the shift to climate neutrality.

As part of this process, the government plans to gradually reduce the remote gaming fee by 0.5% annually, reaching a rate of 4% by 2028.

Expectations from the Project

Reform Party’s representative and Riigikogu’s Chairman, Madis Timpson, is leading the work on the bill. He has long supported lowering charge rates for iGaming businesses. Mr Timpson believes the measure will attract more contributions and increase Estonia’s appeal among international operators.

The lawmaker also links the reform to broader cultural and social objectives. Specifically, the Coalition Pact proposes establishing a national fund for sports infrastructure in collaboration with the country's Olympic Committee and independent sponsors.

A matched-donation system will receive 20% of revised tax revenues.

Opposition’s Reaction

Before the reform takes effect, the Riigikogu must pass a separate bill on gambling-related taxes, as these adjustments cannot be integrated into the national budget. Lawmakers emphasise that this ensures transparent oversight of state income.

The proposal, however, has drawn criticism from opposition members, especially the Centre Party. The Finance Committee’s representative, Andrei Korobeinik, questioned whether lower taxes would truly encourage new investment. He argued that steady conditions and clear policies are often more valuable to businesses than minor fiscal incentives.

Despite objections, the coalition stays committed to enhancing Estonia’s competitiveness and attracting international investors.

At the same time, Prime Minister Kaja Kallas has taken a more cautious stance, reaffirming that although there are proposed fiscal cuts for businesses, the government remains dedicated to strengthening consumer protection measures.

Ms Kallas noted that new restrictions took effect in 2024, banning ads with:

• celebrities;
• “risk-free” bets;
• a focus on minors.