Lawmakers in Estonia are correcting a mistake in the upcoming gambling tax law after discovering that online casinos were accidentally removed from the 2026 tax regime. The issue was identified during a review of the law’s wording, which officials described as an administrative error rather than a policy change. A correction is now being prepared and is expected to be passed within weeks.
Major Mistake in Estonia’s Gambling Tax Act Leaves Lawmakers Red-faced: Quick Summary
- Authorities are quickly correcting a drafting error in the 2026 gambling tax framework after discovering that online casino operators were mistakenly excluded due to a misclassification in legal terminology.
- The error stemmed from online casino activity being categorised as “skill games” instead of “games of chance”, which would have shielded remote operators from the new tax regime.
- The government has described the issue as an administrative oversight rather than a policy change and has confirmed that a legislative fix will be processed within weeks. Officials say the correction will not affect the 2026 budget rollout.
Administrative Oversight Behind the Misclassification of Online Casino Games
Lawmakers in Estonia have been left red-faced after discovering that a typo in the proposed amendments to the 2009 Gambling Tax Act has eliminated online gambling taxes in the current year. A simple clerical error in the draft tax bill approved last December misclassified online casinos as offering skill games, which are exempt from taxes, rather than games of chance.
Evelyn Liivamägi, Deputy Secretary General for Financial and Tax Policy at Estonia’s Ministry of Finance, expressed remorse at the outcome. She explained that a clerical error was behind the typo, and the government had no intention of granting tax relief to online casinos.
Liivamägi stated:
The wording of the law, which excluded games of chance offered by online casinos from taxation in 2026 – taxing only skill-based games — was a regrettable mistake that should never have made it into the legislation and in no way reflects the actual intent of the legislator. It was not a deliberate decision or an attempt to grant tax relief to online casinos.
Members of the Finance Committee have confirmed that the loophole will be closed quickly. Officials note that correcting the error will not delay the launch of the 2026 budget. Legal advisers working with gambling companies have also said the lawmakers’ intention was always clear. They agreed that the issue was caused by incorrect wording rather than a plan to reduce tax obligations.
Gambling Tax Reforms Part of Wider Economic Plan
The correction comes as Estonia continues to adjust its gambling tax system. At the end of 2025, the parliament approved a gradual rollback in gambling licence taxes, reducing the rate from 6% to 4% over several years. The decision caused debate within the governing coalition of the Reform Party and Eesti 200.
Despite disagreements, the changes were approved as part of a broader economic package. Supporters of the tax cuts believe lower rates could help Estonia attract more international online gambling companies. Officials have compared this approach to earlier efforts to attract digital and crypto businesses by promoting Estonia as a technology-friendly country.
Former prime minister Kaja Kallas supported the reforms as a way to boost investment in digital industries. Her successor, Prime Minister Kristen Michal, has continued with the same policy direction. The authorities have emphasised that the tax changes will not weaken player protections or other gambling rules.
The government explained that the recent error does not threaten the wider reform plan. However, the situation highlights how small mistakes in the language can have huge financial repercussions in gambling law. As Estonia works toward a more competitive tax system by 2028, pressure mounts on lawmakers to ensure future laws are clear and accurate.