Estonian operators paid €1.4M in taxes after technical error
Estonian online gambling operators have paid a further €1.4 million into the state budget to compensate for missed tax payments following a technical error in the legislation that temporarily set the tax on online gambling to zero. This practice of voluntary tax payments demonstrates licensed operators’ trust in the regulator and their desire to support the development of the local market.
Tax error in Estonia: operators move to rectify the situation
According to the Estonian Ministry of Finance, an error in amendments to the Gambling Tax Act, which was approved by parliament in December 2025, meant that online casinos and bookmakers were not required to pay tax in January 2026. The law was amended as early as February, but some companies decided to make voluntary payments immediately to support the state budget and the Estonian Cultural Foundation (KULKA).
Siiri Suutre, a spokesperson for the Ministry of Finance, told local media outlet ERR that €815,000 was received by the budget in February 2026, and €595,000 in March. “The total amount of tax compensation exceeded €1.4 million. Some companies have indicated that they will transfer funds covering two months at once,” said Suutre.
According to the agency’s calculations, if the law were functioning correctly, the volume of tax liabilities for January-February could have amounted to around €3.5 million, slightly less than the initial estimate of €4 million. Of this amount, around €778,000 is traditionally allocated to KULKA, and the February payments effectively covered January’s shortfall.
Budgetary implications
When planning this year’s state budget, the Estonian Ministry of Finance forecast revenue from the remote gambling tax at €27 million. Due to the error, the Treasury fell short by around €4 million in the first two months; however, voluntary contributions partially offset the shortfall. Calculations to determine the final tax liabilities for the first quarter of 2026 have not yet been completed.
The ministry described the operators’ behaviour as “an example of corporate responsibility” and stated that the online gambling tax system is now operating normally. The country’s largest licensed operators were the main contributors. According to Reuters, last autumn, the independent comparison service Boonuspart published a study of the Estonian market. Analysts predicted steady growth in Estonia’s regulated online gambling market, despite the tightening of responsible gaming measures.
According to Boonuspart’s estimates, the gross gaming revenue (GGR) of the Estonian online market exceeded €450 million in 2025, with online casinos accounting for almost half of this amount. The market’s expected compound annual growth rate (CAGR) stood at 3% for the period up to 2029. By the end of the year, there were 29 licensed online operators in Estonia, including both local brands (OlyBet, TonyBet) and international players (Betsafe).
Growth forecast for the Estonian gambling market
Source: Boonuspart.
Estonia’s unique approach to gambling taxes
With regard to tax policy for online gambling operators, Estonia has chosen an approach that is atypical for Europe. The authorities have decided to reduce the gambling tax from 6% to 4% by 2027, in an effort to attract international online casinos and poker operators. They expect this to attract more international operators, which would in turn bring more benefits to the country than risks. Whilst most countries are raising gambling taxes, Estonia is bucking the pan-European trend.
“To be honest, this is a very obvious long-term move”, said Arturs Zagurilo, CCO of GammaStack, speaking exclusively to SiGMA News. “When it comes to markets in countries such as the UK, where they continue to do the opposite – raising taxes, increasing pressure, and introducing additional restrictions – it is no surprise that operators are starting to look for other markets. Estonia is choosing a different path, and it really does make sense.”
Zagurilo says that lowering taxes will not solve all problems, but that it will make it much more appealing to comply with the law. “This way, operators can be kept in the system instead of being made to leave. If Estonia keeps doing this, it could become the next Malta. A small market, but with clear long-term thinking,” he says.
The authors of the Boonuspart study also noted that the transparent regulatory environment and the weight of the Estonian EMTA licence will continue to attract operators. According to their forecast, the country’s online casino sector will remain stable.
This article was originally published in Russian on 26 March 2026.
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