Estonia Vying for Malta's Spot as a Remote Gambling Paradise

Estonia is getting ready to compete as a gambling paradise with its tax cut, making it possible to rival Malta.

In the online casino gaming world, there’s almost always some form of competition happening. This applies to game providers, online casinos, and regulators, as each region and provider strives to claim top status among players and others within the industry.

In the face of this concept, Estonia recently proposed a tax cut that could potentially transform its entire iGaming landscape, making it a competitor for Malta.

Significant tax overhaul

Estonian gambling regulations are possibly due for an update, as the country is considering a big change in tax. This could ultimately put it in direct competition with Malta, currently the most dominant in the iGaming sector.

The draft legislation is spearheaded by Reform Party MP and Legal Affairs Committee Chair Madis Timpson, who proposes gradually reducing the gambling tax by 0.5 percentage points every year, which would put the tax at 4% by 2029. This move would both stimulate growth in the digital gaming economy and bring in international casinos.

Timpson also stated that the potential social benefits of this move could increase revenue, which can ultimately fund the sports and cultural initiatives.

The proposal is currently under review and shows Estonia’s dedication and intent to become one of the more competitive gambling jurisdictions for licensed casinos.

With the lowering of taxes, the government desires to bring in international providers from other European gaming hubs, and more specifically from Malta, which is considered the gold standard for iGambling regulation and infrastructure.

According to an official from the Estonian Ministry of Finance, their goal is to create an environment that is not just attractive to operators but also provides the best levels of responsible gaming and consumer protection.

Short-term loss, long-term win

Malta has its Malta Gaming Authority (MGA) and favourable gambling conditions up its sleeve. At the current time, the country levies a 5% tax on GGR and has managed to build a thriving ecosystem of gambling companies, legal experts and tech providers.

Should Estonia offer a lower tax rate, it could drastically undercut Malta’s appeal, especially considering startups and mid-sized operators looking to minimise their overhead costs.

The Estonian government believes that the short-term loss in tax revenue cannot compare to the long-term benefits this move would bring. This includes job creation, increased foreign investment and an enhanced digital infrastructure.

Other countries like Gibraltar and the Isle of Man also offer favourable tax regimes, but Estonia’s latest pitch sets them apart, blending low taxes, robust digital infrastructure and streamlined licensing procedures. This already has a strong reputation for its e-governance and cybersecurity.

All these elements together could be a major draw for any tech-savvy EU online casino looking to cut down on costs and expand its reach.

Industry and region reaction

Not all the MPs are convinced that this would be a good move. Centre Party MP Andrei Korobeinik, deputy chair of Riigikogu’s finance committee, has stated that a tax cut can reduce rather than increase the government revenue.

According to Korobeinik, no analysis has been made, and as per the drop in other countries’ markets, it shows that the impact is not that big. The focus should instead be on certainty and stability.

Korobeinik also called for more transparency during the debate on the bill, especially on the funding of sports and cultural projects, as these have been inconsistent in recent years.

The industry reaction overall can be labelled as cautiously optimistic. There are a couple of operators who have already expressed their interest in relocating or even just expanding their operations to Estonia, should the tax cut be approved.

Then there are experts who warn that these low tax rates could potentially lead to regulatory challenges as lower tax may attract more operators while at the same time increasing concerns about responsible gaming, consumer protection and operator oversight.

Estonia has, however, pledged that it is dedicated to maintaining strict regulatory standards, which include robust anti-money laundering protocols and player safety measures.

If this new tax regime is approved, it can take effect as early as 2026. Stay up to date with all the latest developments with CasinoWow.

Do you enjoy this article?

Share your experience on Trustpilot

By Deni

Verified Casino Expert

Expertise: Casino Content Writing, Journalism & (PR), Gambling Regulations, Dutch & German Gambling Markets

Hi, I'm Deni! I'm a research obsessive with a passion for gambling regulations, market trends, and casino news. I dig deep into every topic I cover - so every article, review, or guide I write is built on solid research and real detail.

Learn about our Review Process

Anything incorrect or missing?

Last updated: October 15, 2025

Let us know

Most Popular

Pragmatic Play's mega slot releases worth playing in 2026

Prediction markets are coming for iGaming, and Gen Z is already there. Expert insights included

Google has blocked over 270 million illegal gambling ads in 2025

Evoke agrees to a £243m William Hill takeover by Bally's Intralot

Ontario's market success sets the stage for Alberta's upcoming launch

{"3":{"n":"Games Global","i":"11-2025\/games-global-icon.png"},"4":{"n":"NetEnt","i":"netent-icon1.png"},"11":{"n":"Novomatic","i":"novomatic-icon-1.png"},"12":{"n":"Play'n GO","i":"play-n-go-icon1.png"},"13":{"n":"Big Time Gaming","i":"btg-icon-1.png"},"14":{"n":"Barcrest","i":"barcrest-icon-1.png"},"15":{"n":"WMS","i":"wms-icon-1.png"},"16":{"n":"NYX Interactive","i":"nyx-icon1.png"},"17":{"n":"NextGen Gaming","i":"nextgen-icon.png"},"18":{"n":"IGT","i":"igt-icon-1.png"},"19":{"n":"Yggdrasil","i":"yggdrasil-icon-1.png"},"20":{"n":"EGT Digital","i":"egt-digital-icon.png"},"21":{"n":"Betsoft","i":"Betsoft-icon.png"},"22":{"n":"Evolution","i":"evolution-icon-1.png"},"23":{"n":"Merkur Gaming","i":"merkur-gaming.png"},"24":{"n":"Thunderkick","i":"thunderkick-icon.png"},"27":{"n":"Aristocrat","i":"11-2025\/Aristocrat-gaming-icon.png"},"28":{"n":"Playtech","i":"Playtech.png"},"29":{"n":"Quickspin","i":"11-2025\/quickspin-icon.png"},"30":{"n":"Bally Gaming","i":"Bally-Gaming-icon.png"},"31":{"n":"Light & Wonder","i":"11-2025\/Light-and-Wonder-icon.png"},"34":{"n":"Pragmatic Play","i":"Pragmatic-Play-icon.png"},"35":{"n":"Push Gaming","i":"pushgaming-icon.png"},"36":{"n":"Relax Gaming","i":"relax-gaming-icon.png"},"37":{"n":"Hacksaw Gaming","i":"hacksaw-gaming-icon.png"},"38":{"n":"Nolimit City","i":"nolimit-city-icon (1).png"},"39":{"n":"Amatic","i":"amatic-icon(1).png"},"40":{"n":"BGaming","i":"BGaming-icon.png"},"41":{"n":"Blueprint Gaming","i":"blueprint-gaming-icon.png"},"42":{"n":"ELK Studios","i":"elk-studios-icon.png"},"43":{"n":"Ezugi","i":"ezugi-icon.png"},"44":{"n":"Gamomat","i":"gamomat-icon.png"},"45":{"n":"Habanero","i":"habanero-icon.png"},"46":{"n":"iSoftBet","i":"isoftbet-icon1.png"},"47":{"n":"Playson","i":"playson-icon.png"},"48":{"n":"Red Tiger Gaming","i":"redtiger-icon(1).png"},"49":{"n":"Wazdan","i":"wazdan-icon(1).png"},"50":{"n":"Amusnet","i":"amusnet-icon.png"}}

{"2":{"n":"VISA & Mastercard","i":"VISA-MasterCard-Icon-1.png"},"3":{"n":"Skrill","i":"Skrill-Icon-1.png"},"4":{"n":"Neteller","i":"Neteller-Icon-1.png"},"5":{"n":"Paysafecard","i":"Paysafecard-Icon-1.png"},"7":{"n":"Pay N Play","i":"Pay-N-Play-Icon-1.png"},"9":{"n":"iDebit Canada","i":"iDebit-Icon-1.png"},"10":{"n":"Entercash","i":"Entercash-Icon-1.png"},"11":{"n":"iDeal","i":"IDEAL-Icon-1.png"},"12":{"n":"Citadel","i":"Citadel-Icon-1.png"},"13":{"n":"Payz","i":"payz-icon.png"},"14":{"n":"Sofort","i":"sofort-icon-2.png"},"15":{"n":"Bank Transfer","i":"Bank-Transfer-Icon-1.png"},"16":{"n":"Zimpler","i":"zimpler-icon.png"},"17":{"n":"PayPal","i":"PayPal-Icon-1.png"},"18":{"n":"Apple Pay","i":"Apple-Pay-Icon-1.png"},"20":{"n":"Cheque","i":"Cheque-Icon-1.png"},"21":{"n":"Bitcoin","i":"Bitcoin-Icon-1.png"},"22":{"n":"Euteller","i":"Euteller-Icon-1.png"},"23":{"n":"Trustly","i":"Trustly-Icon1.png"},"24":{"n":"Instadebit Canada","i":"Instadebit-Icon-1.png"},"25":{"n":"UPI","i":"upi-icon.png"},"26":{"n":"RuPay","i":"RuPay-icon.png"},"27":{"n":"PayTM","i":"paytm-icon.png"},"28":{"n":"AstroPay","i":"astropay-icon.png"},"29":{"n":"Jeton","i":"jeton-icon.png"},"30":{"n":"MuchBetter","i":"muchbetter-icon.png"},"31":{"n":"Interac","i":"Interac-icon.png"},"32":{"n":"Swish","i":"Swish-icon.png"},"33":{"n":"POLi","i":"poli-icon.png"},"34":{"n":"Neosurf","i":"neosurf-icon.png"},"35":{"n":"Siirto","i":"Siirto-icon.png"},"36":{"n":"Coinbase","i":"coinbase-icon(1).png"},"37":{"n":"Binance","i":"Binance-icon(1).png"},"38":{"n":"Kraken","i":"kraken-icon.png"},"39":{"n":"Ethereum","i":"ethereum-icon(1).png"},"40":{"n":"Dogecoin","i":"dogecoin-icon.png"},"41":{"n":"Litecoin","i":"litecoin-icon.png"},"42":{"n":"MB WAY","i":"4-2026\/MB-Way-icon.png"},"43":{"n":"Multibanco","i":"4-2026\/Multibanco-icon.png"},"44":{"n":"Bizum","i":"5-2026\/Bizum-icon.png"}}

Estonia vying for Malta's spot as a remote gambling paradise

Significant tax overhaul

Short-term loss, long-term win