On 10 February, the Estonian Parliament, called the Riigikogu, held a final vote on a change to the Gambling Tax Act. This amendment restores taxation on online gambling, correcting a mistake in the law that had temporarily let online operators avoid paying tax.
According to local media outlet ERR, the updated tax amendment was introduced by MP Tanel Tein (pictured) from the Eesti 200 party. The wording adopted at the end of last year mistakenly excluded online casinos from taxation. This omission also had wider economic implications.
According to the new version of Estonia’s gambling legislation, both games of chance and games of skill offered by online operators are taxed on the same basis. The removal of the term “game of skill” from the relevant section of the law will result in a uniform tax rate of 5.5% being applied to both categories.
The Finance Committee of the Riigikogu also announced the date of entry into force of the amendment: 1 March 2026. Throughout February, the previous tax calculation practice will remain in force, as will the technical requirements for operators and the Estonian Tax and Customs Board (MTA).
The update to tax rates is related to legislation passed in December of last year and is effective as of 1 January 2026. It aims to increase funding for sports and culture through revenue from gambling taxes. The restoration of equal taxation may restore legal clarity for both operators and the tax authority.
Along with the update to gambling legislation, the Estonian government has approved special amendments for crypto asset service providers. They will be required to report transaction data to the MTA. Until now, income received in cryptocurrencies has been taxable as ordinary income, but in practice, it has not always been declared.
As of 2027, the submission of information on cryptocurrency assets will become mandatory. As Finance Minister Jürgen Ligi of the Reform Party has noted, in 2024, only 2,400 taxpayers declared income from cryptocurrencies. Therefore, the changes introduced on 1 July 2024 and 4 June 2025 include stricter licensing requirements.
The total declared amount was less than €20 million, added Erle Kõõmets, head of the tax and customs policy department at the Ministry of Finance. According to her, market volatility and years of losses reduced the motivation to declare income. Even in profitable years, many Estonian taxpayers did not file reports.
The text of the amendments on cryptocurrencies also says that the sector has suffered from large-scale fraud schemes, which have made people less confident in the market. At the same time, a new EU law called MiCA (Regulation 2023/1114 on crypto-asset markets) is being used to create a standardised set of rules for people and businesses involved in crypto markets.
The ERR article also mentions the connection with a recent legislative error in amendments to gambling legislation, which led to a loss of budget revenue and drew additional attention to the regulation of digital services. Commentator Arnis Parsovs noted that banks do not always manage to implement measures against Smart-ID phishing, which exacerbates the risks for digital services.
Estonia has long been considered a pioneer in the field of digital assets and blockchain technology: the e-Residency program and early adoption of blockchain in public services have made the country an attractive platform for crypto innovation. However, recent regulatory changes have sparked debate, according to Blockchain Magazine. Will the amendments turn into regulatory pressure that could disrupt the very innovative environment that made Estonia a crypto hub? This question remains open.
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