Estonia Adviser Dismissed After Gambling Tax Blunder

A senior adviser at Estonia’s parliament lost her position after a costly drafting mistake in gambling legislation that is expected to deny the state budget millions of euros.

Estonia Loses EUR 4M After Tax Error

The error showed up in the Gambling Tax Act approved in December, where incorrect wording excluded online casino operators from taxation for 2026. Because of this, authorities estimate a shortfall of around EUR 4 million ($4.6 million) in expected revenue. Lawmakers have since amended the legislation, but the financial impact for the year remains unavoidable.

The dismissal was confirmed by Riigikogu Chancellery Director Antero Habicht, who explained that disciplinary proceedings were launched in January, reported ERR News. According to him, the decision to end the adviser’s employment was based not only on the legislative mistake itself but also on additional issues identified in an internal review. He stressed that the outcome was considered justified and unavoidable under the circumstances, while he rejected claims of political motivation.

Details from an internal directive reveal that the adviser had identified the mistake in early January but did not inform senior officials right away. Leadership became aware of the situation days later through media coverage, which increased scrutiny and criticism.

Political Fallout Grows After Estonia Gambling Tax Error

The case has triggered political tensions, with opposition figures arguing that the adviser has been blamed. Finance Committee member Aivar Kokk suggested that responsibility should not fall on a single individual, accusing the governing coalition of attempting to deflect criticism. He pointed to earlier instances where other parties were blamed before the focus shifted to the dismissed official.

Additional context has further complicated the situation. Reports indicate that the adviser had warned that the draft law was being prepared too swiftly and required more time to have a thorough review. She argued that legislation demands precision and careful development, as even minor wording issues can have significant consequences.

In her written response during the proceedings, the adviser pointed to heavy workload pressures and unclear reporting procedures as contributing factors. She also held that under more favorable conditions, the issue might have been spotted earlier.

The controversy comes at a sensitive time for Estonia, which aims to establish itself as a competitive hub for the iGaming industry. The country has been lowering its online gambling tax, with plans to bring it down to 4% by 2029 in an effort to attract operators and investment.Despite the swift correction of the legal error, the incident has raised concerns about the legislative process and brought attention to the risks associated with rushed policymaking in a sector with significant financial implications.