Estonia Will Lower the Gambling Tax to 4% for Sports and Culture Funding : PMPMedia.io

By Arijit Roul - 4 Nov, 2025 More about the author

Changes aim to attract companies even though 6% tax rate remains low compared to other European nations. The Estonian Government approved modifications to the Gambling Tax Act. Online casino tax rates drop from 6% to 4%. Local reports indicate the Government wants to secure funding for sports and culture. This move creates stability for both sectors.

Margus Tsahkna serves as Minister of Foreign Affairs. He explained: “The current plan is that while about €22m ($25.5m) is collected at the moment, if everything works and the forecasts hold, this could grow to €30m by 2028.” Money goes to culture and sports entirely. Annual budget negotiations might become easier. This mechanism generates revenue on a larger scale.

Former Finance Minister Questions Basis for Proposed Tax Reduction

The UK situation differs from Estonia. The British horse racing industry requests that the Government reconsider changes. Taxes might reach 40% there. Estonian Government members disagree about these plans. Mart Võrklaev worked as the Finance Minister before. Local newspaper Eesti Ekspress published his statement: “We’ve raised several taxes. We decided to raise the gambling tax in 2023. And now, at the suggestion of one Eesti 200 MP, it’s being lowered.”

The Ministry of Finance created forecasts showing the tax cut costs. 2026 loses €6m in revenue. €8m disappears in 2027. 2028 sees a €10 m reduction. The new scheme assumes that a lower tax attracts gambling operators to Estonia. The 2023 tax increase has already happened. Nine new operators entered the market afterwards. €4m per year came from this growth. Massive influx predictions lack a solid foundation, according to Võrklaev. Bill faces criticism for another reason, too. The 6% tax rate beats most EU countries already. The UK charges 21% currently. Italy sets the rate at 24.5%. France raised the online betting tax rate to 54.9% this year.