The ruling Reform Party and its majority partner, Eesti 200, have signed a new coalition pact. In it, they outlined plans for Estonia to review its gambling tax framework by 2028.
The coalition has governed since 2023 under Prime Minister Kaja Kallas. Starting in 2025, it will push forward changes aimed at strengthening national security. The reforms will also focus on improving social protections and accelerating the transition to climate neutrality.
As the coalition will review its tax deal of 2024, gambling reforms are firmly on the fiscal agenda. Last year’s tax agreement reclassified remote gambling levies under the Excise Duty Act. It also aligned the country’s framework with broader EU compliance standards.
Tax reform 2024 of Estonia raised the Remote Gambling Tax on games of chance from 5% to 6% of net bets. It also introduced similar hikes to the Game of Chance Tournament Tax, Toto Tax, and Lottery Tax. The Lottery Tax saw the sharpest increase, jumping from 18% to 22% on ticket sales.
The published articles state that the government will initiate the amendment of the Remote Gambling Tax Act in parliament to find an additional funding for sports and culture. They will reduce the yearly tax rate by 0.5% and reach 4% by the year 2028.
The government will create a dedicated national fund to finance major sports infrastructure using proceeds from online gambling. Projects will align with priorities set by the Estonian Olympic Committee to ensure funds support nationally significant venues.
The deal states that parliament will initiate amendments to the Remote Gambling Tax Act. The goal is to secure additional funding for sport and culture.
The government will launch a second fund to encourage private-sector co-financing of culture and sport. Under this model, the state will cover one-third of the cost, while corporate sponsors contribute the remaining two-thirds. The government will allocate 20% of new gambling tax revenues for matched donations.
