Posts Tagged ‘Gambling’

Estonia’s Riigikogu has approved a phased-in reduction the tax it charges online casinos. Reducing the rate to 4% of gross revenue, from the current 6% is in keeping with the country’s efforts to cultivate a well-regulated offshore gambling industry. A previous proposal would have raised the rate a percentage point, but supporters in the government, led by Tanel Tein, worried that doing so would scare off potential investors.

Opponents fret that cutting the tax without any guarantees that the industry will see its revenues grow means Tallinn risks having less money for culture and sport. Critics also warn that more betting increases the risk that Estonia’s online casinos will be exploited by money launderers. Mr Tein managed to sell the lower rate by labelling it a “pro-growth pivot”, but dissenters within the government said only voted for it because of his threats to dissolve the government if they did not get in line. His high-stakes bid has paid off, for now.