The Riigikogu voted 51-31 to lower the online gambling tax from 6 to 4 percent over two years. MP Liina Kersna (Reform) abstained, while fellow Reform MPs Aivar Sõerd and Signe Kivi did not vote.

The bill was led by MP and former basketball player Tanel Tein, a member of the Riigikogu's Finance Committee and the Eesti 200 parliamentary group. The goal of the change is to modernize gambling rules, raise transparency and, ultimately, boost tax revenue by attracting international online casino operators to register in Estonia.

"We want to bring global accounting to Estonia," Tein said. He added that physical casinos won't set up shop here, so the focus is on pulling in foreign tax revenue instead.

The MP also said the change makes it possible to move forward with his campaign promise of building a major new arena. In his words, "a concrete funding model has been created" through the updated legislation.

With these amendments, Tein added, the Cultural Endowment of Estonia will also gain two new endowments — one aimed at bringing in private capital and another dedicated to sports facilities.

Several Reform Party lawmakers had previously criticized the gambling tax cut.

Former finance minister and MP Mart Võrklaev (Reform) had argued the plan should be dropped or delayed because it would not help people. He nevertheless voted for the bill.

Finance Committee chair and MP Annely Akkermann (Reform) had also expressed doubts but ultimately supported it.

Finance ministry warns of potential costs

The Ministry of Finance has been openly critical. Officials warned that a tax cut of this size would cost the state budget if revenue projections fall short. Estimates show gambling tax receipts declining by €6 million in 2026, €8 million in 2027, €10 million in 2028 and €13 million in 2029.

Ministry deputy secretary general Evelyn Liivamägi said regulators already struggle to supervise remote-gambling operators, most of whom maintain their executives, business operations, servers and customers abroad.

"It's difficult to exercise oversight [abroad] now, and it will remain difficult going forward," she said.

Kersna, Wednesday's only abstention, said she supported the bill's broader purpose but couldn't ignore the impact on the cultural sector.

"According to official forecasts, €13 million will be pulled from culture over the next three years," she underlined.

Tein, however, rejected the assessment. He said those calculations don't hold up, adding that comparisons with the Foresight Center show culture and sports "definitely won't receive less money next year" as a result of the tax cut.

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