Estonia to challenge Malta for ‘remote gambling paradise’ status with 4% tax

• Estonian MPs from Reform Party and Eesti 200 draft bill to reduce online gambling tax from current 6% to 4% by 2029 through annual 0.5% cuts
• Lawmakers claim Estonia could rival Malta as hub for international operators serving players in France, Spain and other European markets
• Opposition criticises lack of analysis behind proposals, warning tax cuts may reduce rather than boost government revenues

A cross-party group of Estonian coalition MPs has introduced legislation to slash the country’s remote gambling tax rate, aiming to transform Estonia into what one lawmaker calls a “remote gambling paradise” that could rival Malta’s dominance in the European online gaming sector.

The bill, spearheaded by Reform Party MP and Legal Affairs Committee chair Madis Timpson, proposes reducing Estonia’s online gambling tax from the current 6% to 4% by 2029 through annual decrements of 0.5 percentage points. This represents a dramatic policy reversal after the government had planned to increase the tax to 7% in 2026, according to ERR News.

Members of the Eesti 200 faction at the Riigikogu. Source: Siim Lõvi /ERR News.

Attracting international operators

The proposal targets foreign gambling companies currently based in jurisdictions like Malta, seeking to entice them to relocate their operations to Estonia.

“A remote gambling paradise is indeed what we could become. The idea would be that those foreign firms which are currently operating somewhere with their place of business officially registered in, for instance, Malta, would come to Estonia. Those people who are playing somewhere, I don’t know, in France, in Spain, their profits would come to us,” Madis Timpson said.

The Reform Party MP argues that attracting international operators would generate additional tax revenue for sports and cultural projects, particularly funding for a proposed national sports hall.

“We have been talking here about this famous large [sports] hall that could be built, but all the time it’s as if we deliberate and deliberate. In fact, I signed on to this initiative primarily as a member of the support group for elite sports and coaches. Every cent we manage to obtain to fund this large hall is, in my opinion, a welcome deed for athletes and cultural figures,” Timpson continued.

Opposition raises concerns

Center Party MP Andrei Korobeinik, deputy chair of the Riigikogu’s Finance Committee, has criticised the proposals for lacking proper economic analysis.

“The initiators of the bill believed the lobbyists, who promised that if this tax rate is lowered, then immediately casinos and remote gambling service providers will come here. The reality is that no analysis has been carried out and the experience of other countries shows that such a small percentage drop does not affect the market much. For them, a stable economy and that certainty are much more important,” Korobeinik argued.

The opposition MP warned that the tax cuts could result in reduced government revenues rather than the promised increases, questioning whether the competitive advantage would be sufficient to attract operators from established jurisdictions.

Long-awaited legislative reform

The proposed amendment marks the first major revision of Estonia’s Gambling Act in more than 15 years, with supporters arguing the legislation needs modernising to compete in the evolving European market.

The bill has been backed by multiple Reform Party MPs including Timo Suslov, Anti Haugas, Kristo Enn Vaga, Jüri Jaanson and Kristina Šmigun-Vähi, alongside most of Eesti 200’s parliamentary delegation.

Korobeinik acknowledged that the debate could at least improve transparency around sports and cultural funding decisions, noting that Estonia currently lacks the expert oversight that existed until 2017.

“Up to 2017 we had the gambling council, which one could love or hate, but at least there the decision-making process was transparent. There were experts who made proposals. Right now, nothing like that exists. If the government wants to support some major event, they just make the decision to. The Riigikogu cannot influence it. They don’t ask an expert’s opinion, so why some other major event is left without support, no one knows,” Korobeinik commented.

If approved, the legislation would position Estonia as one of Europe’s most competitively taxed online gambling jurisdictions, directly challenging Malta’s established position as the continent’s primary licensing hub for international operators.