Legislative Typo Briefly Eliminates Estonia Online Casino Tax

An inadvertent drafting error in Estonian gambling legislation created a temporary tax holiday for online casino operators, prompting emergency legislative action to restore revenue collection.

The glitch emerged from December amendments to the Gambling Tax Act, which sought to implement a gradual reduction in gambling taxes from 6% to 4% over several years. However, the final text referenced only “games of skill” in the provisions governing remote gambling, effectively excluding “games of chance” from taxation starting January 1.

The omission had immediate fiscal implications, with the Finance Ministry projecting approximately €27 million in annual revenue at risk. Under Estonia’s legal framework, voluntary payments from operators could not substitute for statutorily mandated taxes, necessitating prompt legislative intervention.

MP Tanel Tein sponsored the corrective amendment, which reinstates the 5.5% tax rate on all forms of remote gambling. The Finance Committee selected a March 1, 2026 implementation date to accommodate technical system updates by both operators and tax authorities.

Committee chair Annely Akkermann expressed surprise at the oversight, noting that the original bill underwent extensive review by multiple government entities. Member Aivar Kokk had previously raised concerns about inconsistencies during committee deliberations.

Gaming industry representatives, including major operators, confirmed they viewed the exemption as an obvious error rather than policy intent. Legal representatives reached out proactively to authorities, signaling their readiness to resume tax payments once the legislation is corrected.

The incident serves as a cautionary tale about the precision required when drafting modern gambling regulations, particularly as jurisdictions increasingly shift toward multi-license systems and digital taxation frameworks. Estonia’s market is scheduled to open to international operators in 2027.