A new national art museum is due to open in Tallinn next year, built on the proceeds from gambling taxes. In Estonia half the revenue collected by the state in gaming taxes is used for cultural projects and, according to the Estonian finance ministry, the amount has doubled over the last five years.

Estonia, a small Baltic country, became a member of the European Union earlier this year. Apart from a period of independence from 1919 to 1940, Estonia was under the control of foreign powers - Denmark, Sweden, Poland and Russia – until 1991. Although a country with very few natural resources and 47% forest cover, Estonia now has one of the strongest economies of the new member states in the EU. This fast economic growth is due in the most part to the number of Finnish companies relocating to the country, particularly to the capital Tallinn which has a beautiful mediaeval city centre. The country also has a strong IT sector and a growing tourist industry. Approximately one third of the total population lives in the capital, which is only 85 k from Helsinki in Finland.

At the moment there are around 126 privately owned casinos throughout Estonia, with half of them located in the capital. The state runs the Estonian Lotto, which has proved very successful and can be accessed over the Internet. The casino business is flourishing in the market economy and is currently taxed at $415 per machine and $1,245 per table. However, there is draft legislation for an increase in the region of 33% next January, if the present gambling act is amended. If gaming tax becomes prohibitive then the country may find itself with an increase in illegal gambling.

A recent survey has caused some concern about the increase in problem gambling. The adult population of Estonia is quite small, around one million, and the survey has concluded that there are about 25,000 gambling addicts. Casino entrance is restricted to those over the age of 21.

Although the Estonian authorities are happy with the casino operators at the moment and foresee no major problems in the industry, they may soon have to seek some preventative measures to deal with the upsurge in gambling addiction and look into methods of treatment. Perhaps some of the increased taxes proposed for January would go to prevention and treatment programmes. For now, the cultural heritage of Estonia is chief beneficiary of the state’s revenues from gambling.

© Copyright 2004 CasinoCompendium



>>> return to archives
>>> return to frontpage