Estonia’s remote gambling operators voluntarily pay €1.4 million after tax‑law error

(AsiaGameHub) –   Estonian remote gambling operators have voluntarily contributed over €1.4 million following a drafting error in the 2026 tax law that temporarily eliminated their tax liabilities.

These payments, covering earnings from February and March 2026, represent the government’s share that would have been collected had the Gambling Tax Act been properly implemented from the beginning of the year.

According to ERR News, Ministry of Finance spokesperson Siiri Suutre stated:

February donations, including income tax, amounted to roughly €815,000, while approximately €595,000 has been received so far in March. The March total is not yet final, and we anticipate additional contributions.

The tax exemption arose because legislative amendments approved in December 2025 inadvertently eliminated lucky games from the tax base due to a drafting error, rendering remote gambling tax-free at the start of 2026.

Parliament member Aivar Kokk highlighted the consequences:

Games of chance and remote gambling were excluded from this year’s tax framework, resulting in online casino games being untaxed throughout 2026.

Consequently, lawmakers moved swiftly to pass an emergency technical amendment that restored the 5.5% tax on remote gambling effective March 1, 2026. This adjustment was designed to synchronize tax collection with standard monthly filing schedules, as confirmed by the Riigikogu Finance Committee.

The Estonian Association of Gambling Operators suggested voluntary contributions, though only a few licensed remote operators have participated to date. Evelyn Liivamgi from the Finance Ministry noted that companies are reacting variously and cautioned that complete recovery of the lost tax revenue would be extremely challenging.

She commented:

Experience demonstrates that people are typically far more eager to make commitments than to follow through on them.

The Ministry’s preliminary estimate places the two-month tax liability at approximately €3.5 million, based on January and February income reports—slightly below the initial €4 million projection. For context, annual remote gambling tax revenue was budgeted at around €27 million. Officials emphasized that the precise shortfall will only be determined after reviewing annual tax filings.

The Ministry continues monitoring voluntary contributions, though the revised Gambling Tax Act is now in effect. This situation highlights Estonia’s ambitions in the competitive iGaming sector and signals its intent to establish itself as the region’s premier online gambling destination.