The Riigikogu passed a law on taxing remote gambling again
The Riigikogu has approved changes to the gambling tax law to rectify issues in the regulation of remote gambling.
On Tuesday, the Riigikogu, Estonia's parliament, adopted a bill initiated by member Tanel Tein from the Estonia 200 faction to amend the gambling tax law. This amendment addresses a technical wording issue that had allowed for an absence of taxation for online casinos since the beginning of the year. The new legislation is scheduled to come into effect on March 1, ensuring that both chance games and skill games, organized as remote gambling, will be taxed uniformly at a rate of 5.5%. The lawmakers overwhelmingly supported the change, with 52 votes in favor and only one against, highlighting a strong consensus on the need for clear taxation guidelines in this emerging sector.
The amendment also revises the original implementation timeline, pushing it to March 1, 2026, as determined by the Finance Committee. This adjustment reflects the need for adequate time for stakeholders to prepare for the new regulations, ensuring that online gambling operators are informed and compliant with the updated tax obligations. The removal of the term "skill game" from the legislation clarifies the scope of taxable activities, thus preventing any further ambiguity in how games are categorized under the law.
This legislative action is significant in the context of Estonia's gambling regulation landscape, as it aims to align remote gambling practices with existing tax frameworks, thereby increasing state revenue and promoting fair competition among gambling operators. It also highlights the government's commitment to addressing gaps in legislation that may have previously undermined the integrity of the gambling sector. Such steps are crucial in maintaining a balanced approach to gambling, particularly in an era where online gaming continues to grow rapidly.