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Estonia Moves to Correct Law That Axed Online Gambling Tax
Estonian lawmakers are preparing a final vote on an amendment to reinstate a 5.5 percent tax on online casinos, aiming to correct a legislative oversight from a December law that inadvertently exempted the industry and threatened funding for sports and culture.
- —Estonian lawmakers are preparing to vote on an amendment to the Gambling Tax Act that will reinstate the gambling tax for online casinos, correcting a legislative oversight that had inadvertently exempted them.
- —The amendment, introduced by MP Tanel Tein, clarifies that both games of chance and games of skill offered as remote gambling will be taxed uniformly at 5.5 percent.
- —The Riigikogu's Finance Committee has set March 1, 2026, as the effective date for the amendment, aligning with the monthly tax assessment cycle and current IT systems.
- —This legislative fix is connected to a December law intended to increase funding for sports and culture through gambling tax revenues, aiming to reestablish legal clarity for operators and tax authorities.
Recap
The Estonian government's swift action to correct a self-inflicted tax loophole demonstrates a primary focus on maintaining fiscal stability and predictable revenue streams. This is less a political crisis and more an administrative course correction, signaling to operators and tax authorities that the state will quickly patch legislative errors to protect its economic framework and funding commitments for public programs.
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