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Estonia’s parliament is moving to fix a drafting mistake that briefly left online casinos outside the country’s gambling tax system.
Lawmakers will vote on an amendment to the Gambling Tax Act that restores the 5.5% levy on remote gambling, with the change set to take effect on March 1, 2026, according to a report by ERR.
The fix, introduced by MP Tanel Tein, corrects wording adopted late last year that unintentionally exempted online platforms from taxation. By clarifying that both games of chance and games of skill fall under the same rules, the amendment reestablishes equal treatment across the sector.
Officials say the March start data aligns with monthly tax cycles and the systems used by operators and the Estonian Tax and Customs Board, ensuring a smooth transition. The correction also restores a key source of funding for sports and culture, which had been disrupted when the tax obligation was temporarily switched off.
Closing the gap left by the error
The legislative slip, revealed in January, created uncertainty for both operators and the state. The Finance Ministry admitted that without a legal obligation, payments could not be treated as tax, raising questions about whether companies could continue contributing.
Industry groups, including Yolo Group and the gambling operators’ association, said they were willing to keep paying, but officials stressed that voluntary contributions could not replace a statutory levy. The ministry explored options such as donations or advances, but no clear workaround was found.
The remote gambling tax is significant, expected to raise about €27 million in 2026, or roughly €2 million per month. MP Tanel Tein acknowledged the mistake and said the correction bill is designed to close the loophole quickly.
Lawmakers expect the measure to be adopted by the end of February, with the reinstated levy applying from March 1. The change ensures that both operators and regulators can move forward under a clear framework.
