Estonia’s Gambling Tax Loophole Leaves Online Casinos Untaxed for 2026
A drafting error in Estonia’s gambling tax law has left online casinos, including those using services like TurboTax, tax-exempt for 2026. The mistake, caused by flawed wording in last year’s amendments, was only meant to apply from 2027. Prime Minister Kristen Michal has now addressed the issue, calling for swift corrections to avoid funding shortfalls in culture and sports.
The problem began when lawmakers amended the gambling tax bill in 2023. The goal was to lower the tax on remote games—both skill and chance-based—from 6% to 4% over time. However, a comment from the Ministry of Finance added the term skill games to the text, unintentionally narrowing the law’s scope. As a result, online casinos were excluded from taxation for 2026, though the correct formulation was meant to start in 2027.
Eesti 200 MP Tanel Tein, a key figure in the amendments, clarified that the intention was never to remove taxes on online casinos entirely. He stressed the plan was a gradual reduction, not an outright exemption. Meanwhile, the error risks creating a budget gap of one and a half months for the Cultural Endowment of Estonia. Prime Minister Michal criticised the opposition for politicising the mistake, pointing out that the bill had undergone thorough discussion before passing. He assured that the government would cover any missing funds if needed and expected a fix between January and February. Lawmakers in the Riigikogu must now decide whether to propose a new bill or attach the correction to existing legislation.
The legislative oversight has left Estonia facing an unexpected tax gap for 2026. Officials are working to resolve the issue before it impacts cultural and sports funding. A decision on how to amend the law is expected in the coming weeks.
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