Estonia Rushes to Fix Tax Error That Lets Online Casinos Off The Hook

A drafting mistake in Estonia’s new gambling tax law has created an unexpected gap that allows internet casino operators to avoid paying taxes in 2026, leading lawmakers to plan fixes. The error came to light after the bill had gone through the Riigikogu and gotten the president’s approval late last year.

Clerical Slip Exempts Online Gambling from Estonia’s 2026 Tax Plan

Aivar Kokk, a Finance Committee member, first brought attention to the problem. He pointed out that talks in the committee had already suggested some issues. He explained that the changed text ended up mentioning tax calculations for activities the law calls “skill-based games.” It did not say anything about chance-based casino products. This oversight means that online gambling, one of the most profitable parts of the market, is not covered by the tax rate that is supposed to start this year, reported Estonian media outlet Eesti Rahvusringhääling.

Kokk stated that the bill’s provisions for future years were written, but the immediate gap could rob the state budget of a lot of income if not fixed. The reform aimed to lower the overall rate from 6% to 4 % over many years, with the first cut to 5.5% planned for 2026. However, under the current wording online casino operators would owe nothing.

Finance Committee head Annely Akkermann admitted the mistake and promised a quick fix. She noted that in her time as a lawmaker, she had not seen this kind of clerical error in a bill she helped draft. She said lawmakers, ministry experts, legal advisors, and even the president’s office checked the text many times, but no one caught the mismatched terms.

Drafting Slip Forces Fast Fix to Estonia’s Online Gambling Tax Rules

Akkermann pointed out two ways to correct the law: adding the fix to another bill in progress or putting forward a separate change just to remove the confusing phrase. She said they would choose the first option to speed things up.

The rush comes from both financial worries and what the industry expects. Akkermann said lawyers from gambling companies have already reached out to the committee. They stress that no company saw the first change as letting online casino games off the hook. She added that the business world thinks the gap is a writing mistake, not a planned policy shift.

The bigger change approved after long talks last year was part of some politicians’ push to make Estonia more appealing to global online gambling firms. Those for it said lower taxes would tempt more companies to do their books in the country. Those against it warned about possible drops in money coming in and problems keeping an eye on the industry.