In Estonia, a typo in the Gambling Tax Act, passed in December, left the iGaming segment tax-free in 2026. The error was discovered by a lawyer for one of the iGaming operators.
A clerical error in Estonia’s amended Gambling Tax Act has unintentionally exempted online casinos from paying taxes in 2026 — a mistake that could significantly reduce funding for culture and sports programmes. The issue has ignited political criticism and prompted urgent government efforts to fix the legislation.
The error first came to light after a draft amendment to the Gambling Tax Act, approved by the Riigikogu (Estonian parliament) in December, unintentionally removed online casinos from the scope of taxable activities for this year. Instead of gradually reducing the tax rate, the bill’s language defined the taxable base narrowly to “skill games,” excluding games of chance and effectively creating a 0% tax rate on online casino operations in 2026.
Riina Sikkut, a member of the Riigikogu’s Finance Committee representing the Social Democratic Party (SDE), sharply criticised the outcome, calling the situation a “tax circus.” She warned that the culture and sports sectors will lose out on expected revenue earmarked to support cultural projects and athletic programmes funded in part by gambling tax receipts.
“The very thing that was feared is happening: culture and sports will be deprived of the expected (additional) revenue — a ‘typo’ that has become law exempts a large part of the gambling industry from paying tax,” Sikkut told ERR News.
Opposition figures have raised the stakes of the debate even further. Martin Helme, leader of the Conservative People’s Party (EKRE), accused government lawmakers of opaque decision-making and demanded an investigation into the political handling of the bill. He said the error could cost the state millions in lost revenue, and that the exemption amounts to an unintended gift to casino operators.
Prime Minister Kristen Michal (Reform Party) acknowledged the mistake publicly and stressed that the government would ensure culture and sports programmes do not suffer due to the drafting error. He said the state will seek alternative budget sources if necessary to cover the funding gap until the law is corrected.
Meanwhile, Evelyn Liivamägi, Deputy Secretary General for Financial and Tax Policy at the Ministry of Finance, apologised for what she described as a “regrettable mistake” in the legislation. She clarified that the exclusion of online casinos from taxation wasn’t the intended policy outcome, and that officials take full responsibility for the oversight.
Parliamentary leaders have pledged to correct the text quickly, with the chair of the Finance Committee indicating the error could be fixed within weeks by amending either the current bill or attaching corrective language to another piece of legislation currently under consideration.
The controversy has also drawn broader criticism of Estonia’s legislative drafting processes. Former Chancellor of Justice Allar Jõks called the incident evidence of systemic flaws in how laws are prepared and reviewed, saying the mistake was avoidable with better legislative oversight.
Political figures across multiple parties have weighed in, some blaming officials for negligence, while others see the error as a symptom of rushed lawmaking and coalition negotiations that left insufficient time for careful review.
Industry observers say the situation might be resolved without long-term harm to tax revenues, noting that gambling operators could voluntarily pay taxes until the legal text is corrected — though this option is legally and practically complex.
Estonia now faces a short window to repair the legislative oversight before funding shortfalls begin to materialise in the state budget.
Culture and sports organisations, which depend in part on gambling tax receipts for their programmes, are watching closely as lawmakers scramble to revise the law and restore the intended tax framework for online gambling activities.
