Estonia to fix accidental elimination of gambling tax
A typo inadvertently exempted online casino gaming from a new tax rate for gambling in Estonia.
Estonia.- Lawmarkers are preparing to correct the accidental elimination of online casino tax in Estonia. The country’s parliament will vote on an amendment to the Gambling Tax Act that would restore the intended 5.5 per cent levy on remote gambling, with the revised wording scheduled to take effect on March 1, 2026.
The proposal, introduced by MP Tanel Tein, fixes language adopted late last year that unintentionally exempted online casino platforms from tax. In the previous wording of the legislation, a clause states that the 5.5 per cent tax rate applies only to “skill games” as defined in Section 1, Subsection 1, Clause 5 of the law.
Mention of “games of chance” was inadvertently left out of the wording of the provisions for this year, although the text referring to subsequent years were correctly drafted to include games of chance.
The intention was to gradually lower gambling tax from the previous 6 per cent to 4 per cent from 2029, cutting the rate by half a percentage point each year. That would mean a rate of 5.5 per cent from April.
The drafting mistake, identified last month, had created uncertainty for operators, the government and sports bodies. Industry groups, including Yolo Group and the gambling operators’ association, indicated they were willing to keep paying, but the Finance Ministry said voluntary contributions could not legally be considered as tax payments without a legal framework.
Estonia’s remote gambling tax is forecast to generate around €27m in 2026. Tein admitted the mistake in the original wording of the legislation and said the amendment was designed to close the gap quickly.
Lawmakers expect the measure to pass by the end of February. The implementation of corrected wording with a March start date will align with monthly tax cycles, helping to avoid disruption, the government said.
