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Online casino tax cut brings two licence applications and a smaller culture budget

LexorCorp Global OÜ · · Source: ERR News

In short

The cut in Estonia's online casino tax has so far brought only two new licence applications, ERR News reports. The Cultural Endowment expects next year's budget to be EUR 6–7 million smaller than projected.

The lower tax on online casinos licensed in Estonia has not produced the extra revenue its supporters expected this year, ERR News reports. According to the Ministry of Finance, only two new licence applications have arrived since the cut; one is being processed and one has been refused.

Only two new license applications have come in, said Evelyn Liivamägi, deputy secretary general at the ministry, adding that the ministry had not expected a rush. A scenario published with the cut had shown online casino tax revenue rising to EUR 95 million by 2029.

Gambling tax is a major source of money for culture. Margus Allikmaa, head of the Cultural Endowment, said next year's budget must be EUR 6–7 million smaller than projected a couple of years ago, largely because of the lower rates, and he proposed ending the cut. Under current law the rate falls in steps to 4 percent by 2029.

Finance Minister Jürgen Ligi called the cut bad policy but said the government will not reverse a decision of the Riigikogu, noting that tax rises or the abandonment of a tax cut must be announced at least six months in advance. A general election takes place in March 2027.

Source: ERR News, . The text above is our own summary; the words in quotation marks are the source's.

What this means for an Estonian entrepreneur

For a remote gambling operator weighing an Estonian licence, the rate is set by law to fall in steps until 2029, and the finance minister says any change must be announced at least six months ahead. The debate shows the cut may be challenged, so a business plan should not rely on the lowest rate alone.

We prepare the player protection and anti-money laundering documents of a remote gambling licence application. Responsible gambling procedures for an Estonian licence