Is Estonia The New Big iGaming Destination in Europe

Estonia, long recognised as one of the world’s most digitised economies, is poised to revamp its gambling landscape. A new reform bill currently before parliament seeks to make the Baltic nation a more attractive hub for online gaming, lowering taxes, embracing cryptocurrency, and modernising regulations that have remained largely unchanged for over fifteen years.

The move positions Estonia to compete directly with established iGaming jurisdictions such as Malta and Gibraltar. Legal experts suggest the combination of lower taxation and advanced digital infrastructure could lure operators increasingly drawn to crypto casinos and technologically sophisticated markets.

Modernising a Fifteen-Year-Old Framework

The draft legislation proposes sweeping changes to Estonia’s gambling framework. Key measures include:

• Updated definitions for remote and additional gambling.
• Expanded scope for licensed operators to offer services like IT and accounting within the same group.
• Mandatory audits of annual financial reports.
• Clearer anti-money laundering (AML) requirements for licence applications.
• Centralisation of licence processing under the Tax and Customs Board.
• Stricter rules for gambling venues near youth facilities.
• Tenfold increases in fines and penalties.
• A gradual reduction of the remote gambling tax rate to 4% by 2029.

Margus Reiland, partner at Tallinn-based Law Firm Widen, describes the reforms as “the most significant update in over fifteen years,” adding that the aim is to encourage licensed operators to base their operations in Estonia rather than abroad.

The proposed tax reductions have drawn both support and scepticism. MPs from Eesti 200 and the Reform Party advocate gradually lowering the remote gambling tax by 0.5 percentage points annually. Industry stakeholders, including Yolo Group founder Tim Heath, have welcomed the proposal as a pragmatic response to operators’ concerns.

“Lower tax friction attracts operators, bringing more investment, jobs, and ultimately more tax revenue,” Heath wrote in a recent blog post, framing the reform as a strategic bet on growth rather than short-term gains.

Opposition voices, particularly from the centre-left Keskerakond party, argue the reforms favour operators without delivering meaningful economic benefits, describing the bill as a “lobby project.”

Estonia is choosing to grow its share of the pie rather than fight over the crumbs.

Digital Infrastructure and Regulatory Credibility

Estonia’s appeal extends beyond taxation. The country’s X-Road data-exchange system—a secure platform linking public and private databases—is a unique asset that underpins regulatory efficiency across sectors, including gambling supervision.

“Estonia has strong IT infrastructure, robust cybersecurity standards, and a well-developed AML framework,” Reiland notes. “Obtaining and maintaining a licence here is already faster, cost-efficient, and administratively straightforward compared to other jurisdictions.”

The bill also preserves cryptocurrency as a payment method for licensed operators, under strict AML and KYC standards. This stance distinguishes Estonia from many European counterparts tightening their crypto regulations, aligning with the EU’s MiCA framework while supporting crypto-driven innovation. Heath highlights this as key to Estonia’s competitiveness, especially for younger players gravitating toward crypto casinos.

Despite political debates over taxation, Reiland stresses that Estonia’s regulatory framework has remained largely stable over time. He anticipates that, once passed, the new gambling bill will provide a predictable environment for operators, a factor increasingly valued in a crowded and administratively complex European market.

The draft legislation also includes modest reforms to responsible gambling measures, notably an expansion of Estonia’s self-exclusion register, HAMPI. Industry stakeholders view this as an incremental but meaningful step toward a safer gaming environment.

Could Estonia Become a European Model?

If successful, Estonia’s integrated approach—combining lower taxation, digital governance, and crypto acceptance—could serve as a reference point for EU-wide discussions on gambling regulation. “The underlying logic is not to prohibit or overregulate, but to use IT systems and secure information exchange to support legitimate business while maintaining oversight,” Reiland says.

For now, the bill’s parliamentary journey continues, with additional reforms on crypto regulation and responsible gambling expected in future legislation. Heath of Yolo Group describes Estonia’s strategy as a blueprint for “how small, smart countries lead global industries—by marrying innovation with integrity.”

With legal stability, digital expertise, and forward-looking tax policies at its core, Estonia is betting that its gamble on innovation may yield a winning hand.