Drafting Error Wipes Out Estonia’s Online Casino Tax for 2026

A drafting error in new gambling legislation has resulted in the effective elimination of online casino tax in Estonia for the current year, contrary to lawmakers’ stated intention to phase in gradual reductions.

The reform, passed in December, was designed to lower gambling tax from 6% to 4% by 2028, beginning with a reduction to 5.5% in 2026. However, a wording mistake means the revised rate applies only to “skill games”, leaving most online casino activity, which falls under games of chance, untaxed for the year.

The issue was reportedly identified by a lawyer acting for a gambling operator and later confirmed by local media. Provisions covering later years were correctly drafted to include games of chance, limiting the error’s impact to the current year.

Critics within parliament have warned the mistake will deprive culture and sport of anticipated funding. Finance Committee member Riina Sikkut said the error had turned a planned tax reform into an unintended exemption, arguing that expected public revenues would now not materialise.

The tax overhaul had been promoted as a way to attract international operators, with supporters suggesting Estonia could become a hub for remote gambling. However, opponents within the governing coalition had already questioned whether modest tax savings would outweigh concerns around legislative quality and fiscal stability.