Estonia's Parliament Approves Gambling Tax Reduction for iGaming Hub Plan : PMPMedia.io

By Arijit Roul - 8 Dec, 2025 More about the author

Yesterday, on December 3rd, Estonia’s parliament, Riigikogu, said yes to cutting the gambling tax. The tax rate goes down from 6% to 4% now. Voting results showed 51 members for and 31 against this decision. This creates a foundation for Estonia to become Europe’s major gambling centre. Estonia’s government had already approved the draft legislation by the end. Earlier plans to increase the tax to 7% were completely reversed. Opposition groups fought this bill strongly. They warned about possible culture funding losses. The risk of future oversight problems worried them, too.

Finance Committee member and former basketball player MP Tanel Tein leads these changes. Modernising gambling regulations stands as the main goal. Transparency levels should rise significantly. International iGaming operators moving to Estonia will boost tax revenue eventually. Public broadcaster Eesti Rahvusringhääling reported Tein saying they want global accounting brought to Estonia. Several politicians work together, pushing Estonia toward becoming an online gambling hub in Europe. Current leaders Malta, Gibraltar and the Isle of Man face new competition from Estonia.

The Ministry of Finance criticises this plan despite political ambitions. State finances could suffer if revenue projections miss targets, according to their warnings. Estimates show gambling tax collections dropping €13 million by 2029. Ministry Deputy Secretary General Evelyn Liivamägi raised oversight concerns about practical challenges. Most online gaming operators base themselves abroad, making regulation difficult. Estonia’s gambling industry is experiencing a difficult period currently. Yolo Entertainment announced massive job reductions in the country recently. Major restructuring aims at consolidating operations under a single regulated brand, Yolo.com. International market expansion plans drive these changes.