Estonia is moving to slash remote gambling taxes in a bold bid to rival Malta as Europe’s go-to iGaming hub. A new bill, backed by coalition MPs, proposes gradually reducing the country’s gambling tax to 4% by 2029 – a dramatic shift from earlier government plans to increase it to 7% next year.

According to iGaming NEXT and ERR News, the proposal is being spearheaded by Reform Party MP Madis Timpson, who chairs the Estonian parliament’s Legal Affairs Committee. Timpson argues that cutting taxes could turn Estonia into a “remote gambling paradise” and attract gaming operators currently headquartered in Malta, the EU’s long-standing iGaming powerhouse.

The draft law outlines a 0.5 percentage point annual reduction, creating what Timpson calls a stable, low-tax environment designed to lure foreign firms and boost state revenues. He also framed the move as a way to support local culture and sport, with additional income earmarked for long-discussed infrastructure projects.

“Every cent we manage to obtain to fund this large hall is a welcome deed for athletes and cultural figures,” he said, referring to plans for new sports facilities.

Not everyone is convinced. Center Party MP Andrei Korobeinik, deputy chair of the Finance Committee, warned that the cuts could backfire, reducing government revenue instead of boosting it. He accused the bill’s backers of relying too heavily on lobbying promises without robust economic analysis.

“For these companies, stability and certainty matter more,” Korobeinik told local media, adding that the debate could at least increase transparency in how sports and cultural projects are funded.

Estonia’s Gambling Act has remained largely unchanged for over 15 years, and supporters of the reform argue that modernisation is overdue. They say lower taxes could help attract new operators, encourage investment, and ultimately grow the country’s share of the lucrative online gaming market.

The proposal lands amid wider industry turbulence. Last week, Yolo Entertainment, an Estonian gaming company, announced plans to cut 280 jobs as part of a major restructuring. The Finance Committee is now reviewing the tax bill, which is expected to face pushback before heading to a vote.