TLDR Estonia cut 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 revenues in January and February required a budget top-up of €220,000 Finland’s planned regulated market could pull operators away from Estonia
Estonia lowered its online gambling tax to bring in more foreign operators. But months after the reform passed, the results have been thin.
The Riigikogu passed legislation late last year to cut the online gambling tax rate from 6% to 4% in stages. The goal was to make Estonia a more attractive place for foreign online casinos to register and operate.
So far, only two license applications have been submitted. Both are still being processed and are not expected to launch until late 2026 or early 2027.
One other operator pulled its application entirely. That leaves the government without the wave of new entrants it had hoped the tax cut would bring.
Revenue Gaps Emerge Early
Tax revenue from online gambling came in at €815,000 in January and €1.12 million in February. But a shortfall of €220,000 had to be covered by a supplementary transfer from the state budget to the Cultural Endowment Fund.
The Cultural Endowment Fund receives money from gambling taxes to support sports and culture in Estonia. The budget gap highlighted the early risks of cutting the tax before new operators arrived to offset the lost revenue.
Evelyn Liivamägi, deputy secretary general for financial and tax policy at the Ministry of Finance, confirmed the limited uptake. She said the two pending applications are still working through the process.
Reform Could Take Years to Show Results
Tanel Tein, a member of parliament from Eesti 200 who pushed