Many regulators and governments are squeezing the gambling industry and making it hard to turn a profit. However, Estonia looks to be going the other way, which may make it an enticing home to many betting companies.

Estonia is planning to reduce its current tax rates from 6% down to 4%. The aim is to entice a large number of gambling operators to the country. If that happens, the aim is to use the extra funds to support sport and culture in the industry.

How the Finances May Work

There are a huge number of gambling operators around the world with a wide range of online casinos. You only have to look at the options on platforms such as Instant Casino to see the potential that may come from being a gambling-friendly country. With so many casinos and sportsbooks out there, enticing them to Estonia could boost the country’s economy.

Around $25.5 million has been collected by the government at the moment. The usual line of thought is that increasing taxes can increase this figure. However, Estonia is instead hoping an increase in operators can boost that figure to over $34.5 million by 2028.

Some see it as a risky move. If there is no increase in overall gambling revenue, then tax income may initially fall by around $7 million. It’s a gamble the Estonian government seems happy to take and goes against what is happening in other European countries.

How Estonia is Bucking the Trend

Some countries are taking a hard line on gambling. Earlier this year, France’s tax on sports betting rose to an eye-watering 59.3%. The UK seems to be following a similar route. Its tax rate is currently at 21% but it’s thought that it may soon go as high as 50%. Other countries such as the Netherlands (34.2%), Greece (35%) and Italy (24.5%) are already quite high.

This means that operators may be priced out of some European countries. When they need to find a new home. Estonia could be the place to be. In the face of these rates, the country’s current 6% rate already looks appealing but lowering it to 4% would make it unbeatable.

In other Estonian gambling news, the huge entertainment company Entain, which operates a huge number of gambling brands, has teamed up with DATA.BET to ensure its Estonian brands have access to the most advanced esports betting coverage.

With the huge growth of esports betting and operators being financially squeezed in foreign markets, Estonia could soon see huge growth in the market. A country with just a 1.4 million population could soon be the new home of European gambling.