The loophole arose from a drafting error in regulations that unintentionally exempted online casinos from tax obligations at the start of this year.
 

Key Points

Online gambling operators have voluntarily contributed over €1.4m ($1.6m) after a regulatory loophole exempted them from taxes since the beginning of the year

Based on reported income, the estimated remote gambling tax liability for January and February was around €3.5m
 

Online gambling operators that were previously exempt from tax obligations due to a regulatory loophole have now voluntarily contributed just over €1.4m ($1.6m) to the Ministry of Finance.

Ministry of Finance spokesperson Siiri Suutre stated: “In February, donations including income tax totalled around €815,000 and in March, approximately €595,000 has been received so far. The March figure is not final, and as far as we know, more donations are expected.’’

The loophole originated from a clerical error in amendments to the Gambling Tax Law, which mistakenly exempted online casinos from tax obligations from the beginning of this year. Lawmakers have addressed the issue by amending the Law and the new provisions took effect at the beginning of this month.

Suutre stated that based on the gambling operators' reported income for January and February, the estimated tax liability for online gambling would be approximately €3.5m.

The changes to the Gambling Tax Law proposed by Eesti 200 were approved by the Riigikogu in December 2025. The amendments to the Law will reduce the 6% tax rate by 0.5 percentage points each year until it reaches 4%.

Due to confusion surrounding the tax, two criminal complaints were submitted to the Prosecutor’s Office, but they were rejected. Mart Helme, the Deputy Chairman of the Conservative People’s Party of Estonia, filed a request for an investigation into potential political corruption, influence peddling and fraud.

Helme emphasised that the situation might not just be a simple drafting error. He suggested that lawmakers could have been misled before the final parliamentary vote.

 

 

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