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Estonia’s government is moving to plug an unexpected hole in its gambling tax rules after lawmakers approved a year-end amendment that, as written, leaves online casino games untaxed in 2026.
Prime Minister Kristen Michal said the state will not let cultural and sports funding take the hit while parliament fixes the mistake.
The problem stems from the Gambling Tax Act amendments passed on Dec. 3 and promulgated on Dec. 18, which were meant to adjust the rate on remote gambling but instead narrowed the taxable base for 2026 through an unintended wording change.
Michal: culture and sport will be covered
Speaking on Tuesday, Michal said the government will find a way to keep money flowing to the areas that rely on gambling tax revenue, even if it needs to cut elsewhere in the short term.
“My position is that culture and sports should not go without funding because of this,” Michal said, adding the state can “look at other priorities and adjust” so those sectors do not lose out.
The immediate concern is the Cultural Endowment of Estonia, which could face a gap if online casino tax revenue does not come in at the start of the year.
Michal described the lapse as a human error and said he expects a legislative fix in January or February, depending on how quickly parliament can complete the necessary procedures.
“Game of chance” casino games not covered under the tax line for this year
The issue was first flagged publicly by Aivar Kokk, a member of the Riigikogu’s Finance Committee, who said the 2026 clause effectively taxes only “skill games” while leaving games of chance and remote gambling out of the taxable wording for the year.
Under the plan lawmakers debated in late 2025, Estonia aimed to gradually lower the remote gambling tax rate from 6% to 4%, with the 2026 step intended to set the rate at 5.5%.
Because the current 2026 language points to “skill games,” operators can argue that online casino-style games of chance fall outside the tax line for this year, creating a real budget risk until the text is corrected.
Ministry of Finance: “regrettable mistake”
The Ministry of Finance has acknowledged the error promptly.
Evelyn Liivamägi, the ministry’s deputy secretary general for financial and tax policy, said the exclusion of online casino games of chance from 2026 taxation “was a regrettable mistake” and “in no way reflects the actual intent” of lawmakers.
She added that the gambling tax is meant to help address the sector’s negative impacts and support activities considered important to society, and she apologized on behalf of the ministry.
Parliament’s fix: two routes, same race against time
Lawmakers now face a practical decision of how to repair the law quickly without creating further knock-on issues.
Finance Committee chair Annely Akkermann has said parliament can either submit a stand-alone bill to remove the “skill games” limitation, or attach a correction as an amendment to another bill already moving through the Riigikogu, with speed likely driving the choice.
Michal said either path requires restarting parts of the legislative process so relevant parties can weigh in, and he estimated the fix could take roughly a month, though it might move faster.
Source: New EER
