Amendment will reinstate a 5.5% tax on remote casino and skill games from 1 March 2026.
 

Key Points

Lawmakers to vote on correction to Gambling Tax Act

Amendment restores 5.5% tax to online casinos

Change linked to December reforms aimed at boosting sports and culture funding
 

Estonian lawmakers are set to approve an amendment correcting a legislative drafting error that temporarily exempted remote gambling from taxation.

The Riigikogu will hold a final vote on Tuesday on changes to the Gambling Tax Act introduced by MP Tanel Tein (Eesti 200). 

The amendment addresses wording adopted late last year that unintentionally excluded certain online gambling activities from Estonia’s gambling tax framework.

The original reform, passed in December and effective from 1 January 2026, was intended to reduce the gambling tax rate from 6% to 5.5% while maintaining revenues to support sports and cultural initiatives. 

However, revised wording referred to “games of skill” instead of “games of chance”, creating ambiguity that effectively left remote casino operations untaxed.

The new amendment removes the problematic terminology to ensure that both games of chance and games of skill offered remotely are taxed on the same basis. Under the correction, a uniform 5.5% gambling tax will apply to all relevant remote gambling activities.

The Riigikogu Finance Committee adjusted the implementation timeline, setting 1 March 2026 as the effective date. Gambling taxes in Estonia are assessed on a monthly basis, making the start of a calendar month the standard point for legislative changes. 

Authorities said the revised timeline aligns with existing IT systems and operational practices used by operators and the Estonian Tax and Customs Board (MTA).

The drafting error was first identified by a gambling operator earlier this year. The Estonian Association of Gambling Operators indicated at the time that members did not intend to take advantage of the situation and would continue paying tax as previously.

MP Tanel Tein, who sponsored the corrective bill, previously stated: “The Estonian Association of Gambling Operators and its member companies have indicated that they do not intend to take advantage of the current situation and will continue paying the tax as before. That's an important signal.”

The correction is expected to restore legal clarity for operators and tax authorities while safeguarding projected state revenues.

In January, officials moved swiftly to address the drafting error after it emerged that revised definitions in the December legislation had effectively set the gambling tax rate at 0% for certain remote activities during 2026. Disagreement followed between the Finance Ministry and the Riigikogu over responsibility for the mistake.

 

 

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