ESTONIA'S IGAMING AMBITIONS
ground. The Estonian process is often perceived as faster and more digitally integrated than other offshore jurisdictions, though perhaps more focused on the fiscal and tax reporting aspects than the consumer-facing policy nuances. Conversely, when compared to the highly restrictive and expensive regimes seen in some Member States, Estonia offers a more commercially viable environment for private operators while maintaining an equivalent level of player safety. Advertising restrictions and the boundaries of market outreach Operators face significant challenges in Estonia in navigating the restrictions set forth in the Advertising Act 8 and specific provisions within the Gambling Act 9 . The Estonian legislature has historically taken a conservative stance on the promotion of gambling services. Under current law, advertising for gambling is generally prohibited, with several critical exceptions. It is permitted on the operator's own website and within their physical premises. More importantly for the digital market, advertising is allowed on "relevant" channels, provided it does not encourage excessive gambling or target minors. However, the use of influencers and social media marketing has come under increased scrutiny by the Consumer Protection and Technical Regulatory Authority (TTJA). 10 In 2024 and early 2025, discussions at the parliamentary level intensified regarding a further crackdown on gambling advertisements in public spaces and on television. The prevailing regulatory sentiment is moving toward a blanket ban on specific types of promotional bonuses (e.g., "loss- back" offers or aggressive sign-up incentives) that could be perceived as exploitative. Practitioners must advise clients to ensure that all marketing materials include the mandatory warning text: "Attention! This is a gambling advertisement. Gambling is not a way to solve financial problems. Read the rules and act responsibly." The visibility and font size of this warning are strictly regulated.
The 2024-2026 fiscal shift and economic sustainability One of the most pressing topics for the Estonian iGaming industry is the recent shift in the tax regime. For over a decade, the five percent tax on GGR for remote gambling made Estonia one of the most fiscally attractive jurisdictions in Europe. However, in response to broader economic pressures and the need for increased state revenue, the government implemented a phased tax increase. The tax rate for remote gambling rose from five percent to six percent in 2024, with a further scheduled increase to seven percent in 2026. While this increase was initially met with concern by the industry, analysis suggests that Estonia remains competitive compared to the 18-20 percent rates seen in markets like the United Kingdom or Denmark. The predictability of this increase – announced well in advance – has allowed operators to adjust their financial models without destabilizing their operations. This fiscal policy reflects the Estonian government's strategy of "sustainable extraction." The goal is to maximize the social and economic benefits of the iGaming sector without driving operators into the unregulated black market. The revenue generated is partially earmarked for cultural and sports projects, as well as for the funding of gambling addiction treatment programs, thereby creating a closed-loop social contract between the industry and the public. A notable demonstration of the Estonian regulatory system’s responsiveness occurred in late 2024 and early 2025, when lawmakers identified a technical legislative oversight that inadvertently jeopardized the legal basis for certain gambling tax collections. Rather than allowing for prolonged legal uncertainty, the Estonian Parliament moved swiftly to introduce corrective amendments. These measures, designed to 'fix' the accidental elimination of specific tax provisions, are scheduled to take effect on March 1, 2026. 11 The amendment clarifies that both games of chance and games of skill offered as remote gambling are taxed on the same basis. By deleting the term "game of skill" from one provision in the legislation,
8 https://www.riigiteataja.ee/en/eli/515032016001/consolide 9 https://www.riigiteataja.ee/en/eli/507122016002/consolide 10 https://www.ttja.ee/en 11 https://news.err.ee/1609936880/online-gambling-tax-fixes-to-take-effect-march-1
IMGL MAGAZINE | MARCH 2026
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