Finance ministry waiting for donations from gambling companies after tax error

The Ministry of Finance is waiting for remote gambling companies to make voluntary donations after an error exempted the franchises from paying tax. The mistake is expected to cost the state €4 million.
Riigikogu members on Tuesday approved a technical fix restoring the gambling tax to online casinos, closing a legislative error that briefly left remote firms exempt.
The Ministry of Finance estimated that €27 million could be collected from the tax in 2027, and around €4 million in the first quarter.
Several gambling operators have said they wish to voluntarily donate money to the state instead of paying the tax.
"It is certainly welcome that several gambling companies have expressed a desire to continue supporting culture and sports. The Ministry of Finance has been contacted about this matter by both the Estonian Association of Gambling Operators and a legal representative, and some businesses have also approached the Tax and Customs Board," said Evelyn Liivamägi, deputy secretary general at the Ministry of Finance.

The ministry has now prepared a separate guideline. Companies may voluntarily transfer funds either by donating directly to the Cultural Endowment of Estonia (Kulka) or to the state treasury account, with the note "donation in place of gambling tax."
However, 22 percent income tax must also be paid on the donation, and directing that portion to the Cultural Endowment requires a separate government decision.
"As of now, no donations have been received, but it should be taken into account that the tax payment deadline would have been February 15. There is no reason to assume donations would start flowing in at the beginning of the month," Liivamägi said.
Tõnis Rüütel, head of the Estonian Association of Gambling Operators (EHKL), said Estonian gambling operators are planning to make donations.
"In short, companies are planning to transfer the money in one form or another when the tax deadline arrives," he said. "The tax payment deadline is the 15th day of the following month. That's what they're keeping in mind."

The lower gambling tax revenue creates a shortfall in the Cultural Endowment's budget. However, Kulka head Margus Allikmaa is not overly concerned.
He said the prime minister has repeatedly promised to compensate the missing amount from the government's reserve.
Allikmaa said the exact amount of the shortfall will become clear no earlier than the end of March, once it's known how much gambling companies have donated.
The reduced gambling tax revenue is not causing immediate issues for Kulka, as Allikmaa says there are sufficient buffers.
Of the gambling operators licensed in Estonia, about half are Estonian companies and half are foreign.
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Editor: Huko Aaspõllu, Helen Wright









