TLDR Estonia cut its online gambling tax from 6% to 4% to attract foreign operators, but results have been slow Only 2 license applications have been submitted, both still being processed One operator withdrew its application entirely Tax revenue from the reform is still modest, with a €220,000 shortfall bridged by a budget transfer Finland’s upcoming regulated market could pull operators away from Estonia if conditions don’t improve
Estonia lowered its online gambling tax rate to attract foreign casinos, but the early results have been underwhelming. Officials say the reform is taking longer to gain traction than expected.
The tax on online gambling is being reduced in stages, dropping from 6% to 4%. The change was passed by Estonia’s parliament late last year and was designed to make the country more appealing to foreign online casino operators.
So far, only two license applications have been submitted. Both are still being processed and are not expected to result in active operators until late 2026 or early 2027 at the earliest.
One operator also withdrew its application during the process. That means the immediate boost in new registrations that officials had hoped for has not materialized.
Early Revenue Numbers Fall Short
Tax revenue figures from the early months of the reform show limited progress. January brought in €815,000, and February rose to €1.12 million.
However, a €220,000 shortfall had to be covered by a supplementary budget transfer to the Cultural Endowment Fund. That gap points to the fact that the reform has not yet generated the extra income it was designed to produce.
Evelyn Liivamägi, deputy secretary general for financial and tax policy at the Ministry of Finance, confirmed the slow start. She said the current numbers reflect a reform that is still in its early stages.
Reform Supporters