Gambling tax proceeds going to cultural endowment to be changed
The distribution of revenues received by the Cultural Endowment Fund (Kultuurkapital) directly from gambling taxes is to change, starting in 2026.
At present 60.6 percent of this revenue is allocated for cultural construction projects; in the future, the figure would be reduced to 52 percent.
Revenue from gambling taxes allocated to the Cultural Endowment Fund has in recent years been rising faster than revenues taken in from alcohol and tobacco excise duties.
Minister of Culture Heidy Purga (Reform), who signed the bill to make the amendment, said: "These proportions need to be in balance."
"While up to now, cultural construction projects have been funded primarily via gambling revenues, the 'softer' content aspect, such as culture and creativity has taken in less revenue from alcohol and tobacco excise duties. Today, we must think about people and restore that balance," the minister went on.
The adjustment will provide an additional €2.7–€3 million annually for cultural and sports activities, Purga added.
Purga noted that prior calls to shift more funding from construction projects to content-related activities are now being realized.
The remaining rationale is helping to ease the effects of budgetary cuts on the creative sector without significantly impacting the completion of sites deemed to be of national cultural importance, for example, the National Library of Estonia (Eesti Rahvusraamatukogu), and the planned new TV house for public broadcaster ERR.
Cultural Endowment director Margus Allikmaa said: "All these calculations were made on the assumption that the projects listed as nationally important cultural sites, including the additional construction of the ERR television complex, will not be at risk, based on current knowledge," adding if final construction costs end up significantly higher than planned, some financing schedules might be extended.
Everything planned for construction will be built, Allikmaa, a former ERR board chair, reiterated.
The bill changing the gambling tax is set to take effect on January 1, 2026.
Any company holding a gaming license or operating permit for organizing gambling is liable to be taxed in Estonia, and this includes those hosting machine-based games of chance, lotteries, sports betting and table games of skill and games of chance at walk-in casinos, and tournaments involving same.
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Editor: Andrew Whyte, Karmen Rebane
Source: 'Aktuaalne kaamera,' reporter Reet Weidebaum
