Legislative Typo Exempted Estonia’s Digital Casinos from Taxation in 2026

Implications for the State Treasury and the iGaming Sphere

According to ERR News, the legislation’s wording now stipulates that the 5.5% fee applies solely to skill-based products, with no reference to games of chance. Consequently, the majority of online gambling activities will remain untaxed throughout 2026. The glaring omission was identified by a lawyer representing one of the country’s RMG brands.

For subsequent years, however, the provisions were drafted with greater precision and explicitly cover iGaming. From the next phase of the reform, the process will proceed as originally intended.

Riina Sikkut, the Riigikogu Finance Committee’s member and the Social Democratic Party’s politician, has taken a firm line on the matter. In her view, Estonia’s culture and sports are being deprived of vital funding, as the typo now embedded in law exempts the industry from paying a substantial share of taxes.

According to Ms Sikkut, the fiscal reform was rushed through, seemingly under political pressure, resulting in flaws that have already hit the national budget.

Tax Diminution: Procedural Nuances

Let us examine the perspectives of the key related figures:

1. Madis Timpson, the Estonian Reform Party’s member and the Legal Affairs Committee’s Chairman, strongly endorsed the initiative. He argued that the rate moderation could turn Estonia into an iGaming hub and draw revenue from other European markets.
2. Kristen Michal, the national Prime Minister, also supported the proposal despite criticism. Some coalition members remained sceptical, suggesting that international operators prioritise economic stability over minor tax concessions.
3. Mart Võrklaev, the Reform MP and the former Minister of Finance, condemned the decision, calling it poorly made under political pressure. He stressed that the alliance was effectively held hostage: without the law’s passage, the budget would have failed to secure the votes, leading to the government’s collapse.

Mr Võrklaev also suggested partial compensation. He proposed decreasing maritime transport subsidies by €9 million, a move that would have saved more than €40 million over 4 years.

The episode, stemming from a clerical mistake, illustrates that even well-established regulatory frameworks are vulnerable to failure. For operators, this situation serves as a reminder to carry out thorough legal assessments of jurisdictions, evaluate potential risks, and build a flexible growth strategy.

At Gaminator, we provide end-to-end support for the development and launch of online entertainment projects in regulated markets. Our experts will gladly assist you with licensing, software integration, and the creation of a robust business plan that complies with legal standards.