Estonia Processes Two Remote Gambling License Applications
Chloe O'Sullivan 
Estonia has begun processing two new remote gambling license applications, with operations anticipated to commence by the end of this year or early next year. This development follows the Riigikogu's decision in December to implement a multi-year remote gambling tax reduction, aiming to establish Estonia as a prominent European iGaming hub. The phased tax cut, initiated at the start of this year, is part of a strategic move to enhance market competitiveness.
Key Takeaways
- Two remote gambling license applications are currently being processed in Estonia.
- New operations are expected to launch by the end of 2026 or early 2027.
- Estonia's remote gambling tax has been reduced from 6% to 5.5% of GGR, with further cuts planned.
Regulatory Framework Changes
In December, the Riigikogu amended Estonia's gaming regulation to introduce a multi-year remote gambling tax cut, which came into effect at the beginning of this year. The initial phase has lowered the tax rate from 6% to 5.5% of gross gaming revenue (GGR). Further reductions are scheduled over the next three years, with the tax set to decrease by half a percentage point annually until it reaches 4% on January 1, 2029. This target rate aims to be one of Europe's lowest, comparable to Malta's 5% cap.
Initial Market Response and Challenges
Despite the tax reduction, the immediate impact on new market entries has been limited. Evelyn Liivamägi, Deputy Secretary General for Financial and Tax Policy at the Ministry of Finance, stated:
"two licence applications have been submitted, but they’re still being processed, and likely won’t begin operating until the end of this year or early next year." One other license application has been withdrawn. Potential hurdles for new operators include a statutory minimum share capital of €1m and a non-refundable application fee of approximately €48k.
Competitive Landscape in the Nordic-Baltic Region
Estonia's efforts to attract iGaming operators face competition from neighboring markets, particularly Finland. Finland, with a larger population of 5.6 million compared to Estonia's 1.4 million, is set to dismantle its state monopoly and open its market to international players in July 2027. Finland's market entry conditions are currently more accommodating, featuring no minimum share capital requirement and a lower application fee of €29k, although it has a 22% tax rate on GGR. Estonia's projected 4% GGR tax rate is intended to offer a significant competitive advantage over Finland's higher tax.
