Estonia’s parliament is acting decisively to close a legislative gap that briefly allowed online casinos to operate outside the nation’s gambling tax framework.
Lawmakers are currently preparing for a final vote on a critical amendment to the Gambling Tax Act, which is designed to restore a 5.5% levy on all remote gambling activities. The proposed change is scheduled to take effect on March 1, 2026, according to official reports.
Restoring Regulatory Parity and Fiscal Stability
The necessity for this fix arose following a drafting error revealed in January. The mistake unintentionally exempted online platforms from their tax obligations due to ambiguous wording in legislation passed late last year. MP Tanel Tein, who introduced the correction bill, noted that the update is vital to ensure that both games of chance and games of skill are treated equally under the law.
By clarifying these definitions, the Estonian government aims to re-establish a level playing field for all operators in the region. Officials have stated that the March implementation date is strategically chosen to align with monthly tax cycles used by both the operators and the Estonian Tax and Customs Board, facilitating a seamless transition back to the standard taxation model.
The Impact on National Sports and Culture
Beyond regulatory clarity, the amendment is essential for the state’s budget. The remote gambling tax is a significant revenue driver, projected to raise approximately €27 million in 2026, or roughly €2 million per month.
These funds are traditionally allocated to support Estonia’s sports and cultural sectors, funding that was briefly jeopardized by the legislative slip.
While industry groups, including the Yolo Group and local gambling operators’ associations, expressed a willingness to continue payments during the loophole period, the Finance Ministry clarified that voluntary contributions cannot legally replace a statutory levy. MP Tanel Tein acknowledged the mistake, stating:
“The correction bill is designed to close the loophole quickly. The March start date aligns with monthly tax cycles and the systems used by operators and the Estonian Tax and Customs Board, ensuring a smooth transition.”
