Remote gambling firms in Estonia voluntarily pay €1.4 million after tax oversight

Remote gambling operators in Estonia have voluntarily paid more than €1.4 million ($1,618,136) to the Ministry of Finance after a legislative error temporarily removed their tax obligations for 2026.

The payments, made in February and March, were intended to compensate for revenue the government would have collected if the Gambling Tax Act had been applied as originally planned, the iGaming Business reported.

According to ERR News, Finance Ministry spokesperson Siiri Suutre said donations reached approximately €815,000 ($941,010) in February, with a further €595,000 ($687,145) recorded so far in March. “The March figure is not final and additional donations are still expected to our knowledge.”

The issue stemmed from amendments passed in December 2025 that inadvertently excluded games of chance from the taxable base. As a result, remote gambling activities were effectively untaxed at the beginning of 2026.

“Games of chance and remote gambling were left out of this year’s taxation, meaning online casino games are not being taxed in 2026,” said Member of Parliament Aivar Kokk.

In response, Estonia’s parliament moved quickly to correct the mistake, approving a technical amendment that reinstated a 5.5% tax on remote gambling. The revised tax took effect on March 1, 2026, aligning with existing monthly reporting practices, according to the Riigikogu Finance Committee.

The Estonian Association of Gambling Operators proposed a voluntary contribution scheme, though only a portion of the country’s 41 licensed remote operators have participated so far.

Evelyn Liivamägi of the Finance Ministry said that not all companies may follow through. She expressed cautious expectations about recovering the full amount, noting that commitments do not always translate into action. “Life generally shows that everyone is much more enthusiastic about making promises than later fulfilling them.”

The ministry estimates that tax liabilities for January and February would have totaled around €3.5 million ($4,045,341)—slightly below an earlier projection of €4 million ($4,623,246). Annual revenue from remote gambling had been forecast at up to €27 million ($31,206,874).

Officials said the final impact on state revenue will only be confirmed after annual tax returns are completed.