Lawmakers in Estonia have given final approval to a Bill that will lower the tax rate on remote gambling to 4 per cent by 2029.
The bill had its third reading in parliament on Wednesday and passed by a vote of 51-31, with one abstention.
As first reported in October by Gaming Intelligence, the bill reverses the course previously set to increase the remote gaming tax in Estonia to 7 per cent in 2026.
The bill approved on Wednesday will see the remote gaming tax gradually fall from its current rate of 6 per cent to 4 per cent by 2029, in an attempt to establish Estonia as a remote gambling ‘paradise’.
The lower tax rate, which was proposed by the Reform and Estonia 200 political parties, was approved in spite of stiff opposition from several political parties and warnings from the Ministry of Finance that it could lead to lower tax revenue for the state.
Speaking ahead of Wednesday’s vote, Anastassia Kovalenko-Kõlvart of the Estonian Centre Party described the move as being part a long-term plan of the Reform Party and Estonia 200 to turn Estonia into a “prison and casino centre”.
“Are there really no more worthy opportunities today than to bring prisoners from abroad and give tax breaks to casino businessmen and through this build such a new image of a European prison and casino centre for our country?” Kovalenko-Kõlvart asked in parliament. “I think that there are many more critical areas in Estonia than gambling and casinos.”
Former foreign affairs minister Urmas Reinsalu said: “The question should rightly arise as to what the motivation is [for the bill]. Culture is being talked about, but in reality, we understand perfectly well, as is also shown in the explanatory memorandum of the Ministry of Finance to the draft law, that on the contrary it will reduce the revenues of the state budget.
“In the perspective of the state budget strategy, state revenues will be reduced by tens of millions of euros. Of course, this will benefit someone, whether it is the entrepreneurs who are actually engaged in online casino ownership, or those entrepreneurs who are also engaged in the business of selling online casino licenses.”
Lawmakers who supported the proposal dismissed these accusation and pointed to other measures contained in the bill, such as increased oversight of gambling licensees, better regulation of crypto assets, and greater financing to support cultural activities.