Estonia’s iGaming Operators Will Not Pay Gambling Tax

In Estonia, iGaming operators are unable to voluntarily pay the gambling tax due to a legislative error.

Error in Gambling Tax Legislation

The Ministry of Finance and the Estonian Tax and Customs Board confirmed that there is no official mechanism allowing voluntary payment of the gambling tax for the online segment, report ERR News.

Because of a drafting error in the Gambling Tax Act, the tax rate for iGaming operators was effectively reduced to zero in 2026.

Position of State Authorities

Response from the Ministry of Finance and the tax authority

According to officials, companies are not allowed to pay more tax than is explicitly required by law.

Even if operators are willing to offset lost budget revenue, there is no official payment mechanism in place.

An alternative for operators

Members of the Estonian Gambling Operators Association (EGOA) who expressed readiness to contribute funds were advised to consider donations to the Cultural Endowment of Estonia.

Such contributions are subject to income tax, part of which is transferred to the state budget.

Discussions in the Estonian Parliament

Finance Committee review

The Finance Committee of the Riigikogu reviewed a draft bill amending the Gambling Tax Act, aimed at correcting the identified error.

The first reading of the bill is scheduled for an upcoming parliamentary session.

Proposal to increase the tax rate

MP Aivar Kokk proposed reinstating the tax at a rate higher than the original 5.5% in order to compensate for lost budget revenue.

According to his estimate, the absence of the tax for nearly two months could result in a significant shortfall for the state.

Legal constraints on tax changes

Six-month notification requirement

Estonia’s Taxation Act requires a mandatory six-month notice period for any changes to tax rates.

This requirement prevents the rapid introduction of new rules and delays the restoration of gambling tax revenues.

Assessment of potential losses

According to the Ministry of Finance, its summer forecast projected revenue from remote gambling at around €2 million per month in the first half of 2026.

The final scale of the state budget losses caused by the legislative error will only become clear after several months.